Flounder Ltd., who owes Pharoah Corp. $603,000 in notes payable, is in financial difficulty. To eliminate the debt, Pharoah agrees to accept from Flounder land having a fair value of $456,800 and a recorded cost of $341,200. (a) Calculate the amount of gain or loss to Flounder on the transfer (disposition) of the land. Loss ✓on the transfer (disposition) of the land $ tA
Flounder Ltd., who owes Pharoah Corp. $603,000 in notes payable, is in financial difficulty. To eliminate the debt, Pharoah agrees to accept from Flounder land having a fair value of $456,800 and a recorded cost of $341,200. (a) Calculate the amount of gain or loss to Flounder on the transfer (disposition) of the land. Loss ✓on the transfer (disposition) of the land $ tA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Flounder Ltd., who owes Pharoah Corp. $603,000 in notes payable, is in financial difficulty. To eliminate the debt, Pharoah agrees to
accept from Flounder land having a fair value of $456,800 and a recorded cost of $341,200.
(a)
Calculate the amount of gain or loss to Flounder on the transfer (disposition) of the land.
Loss ✓on the transfer (disposition) of the land
$
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