Narda corporation agrees to sell

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Narda corporation agrees to sell all of its capital stock to Effie corporation for three monthly payments of $200000. After Effie made the first payment, it ceases making other payments. The stock subscription agreement states that Effie, thus forfeits its payments and is entitled to no other future consideration. How should narda record the 200,000 forfeited payment?

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Reference no: EM13888896

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