What is the gain (or loss) from the derecognition of liability?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kochi Company showed the following data with respect to a matured obligation:
Notes payable 1,100,000
Interest payable 200,000
The company negotiated with the creditor for the settlement of the notes payable. The entity transferred a transportation vehicle with carrying amount of P800,000 and a fair value of P1,100,000. Assume that only the notes payable are to be extinguished, while the accrued interest is paid in cash together with the transportation vehicle. What is the gain (or loss) from the derecognition of liability?
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