What amount should brown report as a gain

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Question - During 2020, Brown Inc experience financial difficulties and is likely to default on a P500,000, 15%, three year note dated January 1, 2018, payable to PNB. On December 31, 2020, the bank agreed to settle the note and unpaid interest of P75,000 for 2020 for P50,000 cash and marketable securities with carrying amount of P375,000. Brown's acquisition cost of the securities is P385,000. What amount should Brown report as a gain from the debt restructuring in its 2020 income statement?

a. P75,000

b. P150,000

c. P65,000

d. P140,000

Reference no: EM133066010

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