ayment on its long-term note of P6,000,000 due on December 31, xtreme financial pressure and is in default in meeting interest On December 31, 2019, 019. The interest rate is 10% payable every December 31. a an agreement with the creditor, Guimaras Corporation obtained ne following changes in the terms of the note: The accrued interest of P600,000 on December 31, 2019 is forgiven. The new interest rate is 12%, which approximates the prevailing rate of interest for similar obligation at the time of the restructuring. The new date of maturity is December 31, 2024. That is Guimaras Corporation's gain on debt restructuring? Cound of present value factors to three decimal points) P1,032,720 P 602,400 P 151,200 P O

ayment on its long-term note of P6,000,000 due on December 31, xtreme financial pressure and is in default in meeting interest On December 31, 2019, 019. The interest rate is 10% payable every December 31. a an agreement with the creditor, Guimaras Corporation obtained ne following changes in the terms of the note: The accrued interest of P600,000 on December 31, 2019 is forgiven. The new interest rate is 12%, which approximates the prevailing rate of interest for similar obligation at the time of the restructuring. The new date of maturity is December 31, 2024. That is Guimaras Corporation's gain on debt restructuring? Cound of present value factors to three decimal points) P1,032,720 P 602,400 P 151,200 P O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

extreme financial pressure and is in default in meeting interest
payment on its long-term note of P6,000,000 due on December 31,
On December 31, 2019, Guimaras Corporation is experienc
2019. The interest rate is 10% payable every December 31.
In an agreement with the creditor, Guimaras Corporation obtained
the following changes in the terms of the note:
The accrued interest of P600,000 on December 31, 2019 is
forgiven.
The new interest rate is 12%, which approximates the prevailing
rate of interest for similar obligation at the time of the
restructuring.
The new date of maturity is December 31, 2024.
What is Guimaras Corporation's gain on debt restructuring?
(Round of present value factors to three decimal points)
P1,032,720
P 602,400
P 151,200
P O
а.
b.
с.
d.

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