On Jan. 1, 2021, Gel Co. settled a P 1,000,000 loan by issuing to the lender 10,000 shares with par value of P 50 per share. The shares are selling at 120 per share on Jan. 1, 2021. How much gain/(loss) on extinguishment of debt is to be recognized? * a. P 200,000 b. (P 200,000) c. P 500,000 d. (P 500,000)

On Jan. 1, 2021, Gel Co. settled a P 1,000,000 loan by issuing to the lender 10,000 shares with par value of P 50 per share. The shares are selling at 120 per share on Jan. 1, 2021. How much gain/(loss) on extinguishment of debt is to be recognized? * a. P 200,000 b. (P 200,000) c. P 500,000 d. (P 500,000)

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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