alo-halo Company has outstanding P950,000 note payable to Ube Finance Corporation. Because of financial difficulties, Halo-halo Company negotiates with Ube Finance to exchange inventory of machine parts to satisfy the debt. The cost of the machine parts inventory transferred is carried in Halo-halo Company’s books at P835,000. The estimated sales price of these inventory items is P610,000. The gain on debt restructuring is A. 0 B. 115,000 C. 225,000 D. 340,000

alo-halo Company has outstanding P950,000 note payable to Ube Finance Corporation. Because of financial difficulties, Halo-halo Company negotiates with Ube Finance to exchange inventory of machine parts to satisfy the debt. The cost of the machine parts inventory transferred is carried in Halo-halo Company’s books at P835,000. The estimated sales price of these inventory items is P610,000. The gain on debt restructuring is A. 0 B. 115,000 C. 225,000 D. 340,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject :- Accounting
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