At January 1, 2021, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the previous year’s interest. First City Bank Group agreed to settle Transit’s debt in exchange for land having a fair value of $450,000. Transit purchased the land in 2017 for $325,000.Required:Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments.

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Q: At January 1, 2018, Transit Developments owed First City Bank Group $600,000, under an 11% note with…

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Q: At January 1, 2021, Transit Developments owed First City Bank Group $720,000, under an 9% note with…

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.