Pls answer number 9 with solutions QUELL Co. owes PUT DOWN Bank ₱4,000,000 plus accrued interest of ₱360,000. The unamortized discount on the loan is ₱80,000. The debt is a 10-year, 12% loan. During 20x1, QUELL’s business deteriorated due to loss of demand for its services. On December 31, 20x1, PUT DOWN Bank agrees to accept old equipment and cancel the entire debt. The equipment has a cost of ₱12,000,000, accumulated depreciation of ₱8,800,000, and fair value of ₱3,600,000. How much is the gain (loss) on the extinguishment of the debt? a. 1,800,000 c. 760,000b. (1,800,000) d. 1,080,000
Pls answer number 9 with solutions QUELL Co. owes PUT DOWN Bank ₱4,000,000 plus accrued interest of ₱360,000. The unamortized discount on the loan is ₱80,000. The debt is a 10-year, 12% loan. During 20x1, QUELL’s business deteriorated due to loss of demand for its services. On December 31, 20x1, PUT DOWN Bank agrees to accept old equipment and cancel the entire debt. The equipment has a cost of ₱12,000,000, accumulated depreciation of ₱8,800,000, and fair value of ₱3,600,000. How much is the gain (loss) on the extinguishment of the debt? a. 1,800,000 c. 760,000b. (1,800,000) d. 1,080,000
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 4MC: A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the...
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Pls answer number 9 with solutions
QUELL Co. owes PUT DOWN Bank ₱4,000,000 plus accrued interest of ₱360,000. The unamortized discount on the loan is ₱80,000. The debt is a 10-year, 12% loan. During 20x1, QUELL’s business deteriorated due to loss of demand for its services. On December 31, 20x1, PUT DOWN Bank agrees to accept old equipment and cancel the entire debt. The equipment has a cost of ₱12,000,000, accumulated depreciation of ₱8,800,000, and fair value of ₱3,600,000. How much is the gain (loss) on the extinguishment of the debt?
a. 1,800,000 c. 760,000
b. (1,800,000) d. 1,080,000
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