This Company informed That Company that it would be unable to repay its P1,000,000 bond payable due today, That Company agreed to accept title to This Company's computer equipment in full settlement of the bond payable. The carrying amount of the computer was P800,000 and the fair value was P750,000. What amount should This Company report as settlement gain or loss?

This Company informed That Company that it would be unable to repay its P1,000,000 bond payable due today, That Company agreed to accept title to This Company's computer equipment in full settlement of the bond payable. The carrying amount of the computer was P800,000 and the fair value was P750,000. What amount should This Company report as settlement gain or loss?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 9MCQ

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