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During your review of the records of X factor corporation for the year 20A, you noticed that X factor sold a machine with a carrying amount of 640,000 (cost is 1,600,000) on June 30,20A. X Factor received an 800,000 non-interest bearing note due in 3 years. There is no established market value for the machine. The yield rate for this type of note is 12%. X factor recorded the transaction by debiting Note Receivable for 800,000 and crediting machinery for 640,000 and gain on sale for the difference. The transaction has resulted to a gain or loss on sale of (indicate gain or loss in your answer after the amount

During your review of the records of X factor corporation for the year 20A, you noticed that X factor sold a machine with a carrying amount of 640,000 (cost is 1,600,000) on June 30,20A. X Factor received an 800,000 non-interest bearing note due in 3 years. There is no established market value for the machine. The yield rate for this type of note is 12%. X factor recorded the transaction by debiting Note Receivable for 800,000 and crediting machinery for 640,000 and gain on sale for the difference. The transaction has resulted to a gain or loss on sale of (indicate gain or loss in your answer after the amount

FINANCIAL ACCOUNTING
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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During your review of the records of X factor corporation for the year 20A, you noticed that X factor sold a machine with a carrying amount of 640,000 (cost is 1,600,000) on June 30,20A. X Factor received an 800,000 non-interest bearing note due in 3 years. There is no established market value for the machine. The yield rate for this type of note is 12%. X factor recorded the transaction by debiting Note Receivable for 800,000 and crediting machinery for 640,000 and gain on sale for the difference. The transaction has resulted to a gain or loss on sale of (indicate gain or loss in your answer after the amount)

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