Pls answer number 9 with solutions QUELL Co. owes PUT DOWN Bank ₱4,000,000 plus accrued interest of ₱360,000. The unamortized discount on the loan is ₱80,000. The debt is a 10-year, 12% loan. During 20x1, QUELL’s business deteriorated due to loss of demand for its services. On December 31, 20x1, PUT DOWN Bank agrees to accept old equipment and cancel the entire debt. The equipment has a cost of ₱12,000,000, accumulated depreciation of ₱8,800,000, and fair value of ₱3,600,000. How much is the gain (loss) on the extinguishment of the debt? a. 1,800,000 c. 760,000b. (1,800,000) d. 1,080,000
Pls answer number 9 with solutions QUELL Co. owes PUT DOWN Bank ₱4,000,000 plus accrued interest of ₱360,000. The unamortized discount on the loan is ₱80,000. The debt is a 10-year, 12% loan. During 20x1, QUELL’s business deteriorated due to loss of demand for its services. On December 31, 20x1, PUT DOWN Bank agrees to accept old equipment and cancel the entire debt. The equipment has a cost of ₱12,000,000, accumulated depreciation of ₱8,800,000, and fair value of ₱3,600,000. How much is the gain (loss) on the extinguishment of the debt? a. 1,800,000 c. 760,000b. (1,800,000) d. 1,080,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pls answer number 9 with solutions
QUELL Co. owes PUT DOWN Bank ₱4,000,000 plus accrued interest of ₱360,000. The unamortized discount on the loan is ₱80,000. The debt is a 10-year, 12% loan. During 20x1, QUELL’s business deteriorated due to loss of demand for its services. On December 31, 20x1, PUT DOWN Bank agrees to accept old equipment and cancel the entire debt. The equipment has a cost of ₱12,000,000, accumulated depreciation of ₱8,800,000, and fair value of ₱3,600,000. How much is the gain (loss) on the extinguishment of the debt?
a. 1,800,000 c. 760,000
b. (1,800,000) d. 1,080,000
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