User Account

All Pages

What is the amount of the overall net gain or loss

Assignment Help Accounting Basics
Reference no: EM131831773

Question - On December 31, 2007, Queen Co. is in financial difficulty and cannot pay a 10% note due that day. It is a $1,200,000 note with $120,000 accrued interest payable to Trear, Inc. Trear agrees to accept from Queen two pieces of equipment as follows in settlement of the debt and forgiveness of the interest:

Equip #1 Equip #2

Fair Value $580,000 $500,000

Cost $920,000 $900,000

Accumulated Depreciation $460,000 $300,000

What is the amount of the overall net gain or loss that Queen should recognize on the transfer of the equipment and settlement the of debt/forgiveness of interest?

Reference no: EM131831773

Questions Cloud

What the balance of the discount on payable account : What should be the balance of the Discount on Notes Payable account on the books of Jefrey at January 1, 2005 after the first payment is made
Administrative and selling expenses and depreciation : During the year Belyk Paving Co. had sales of $2,350,000. Cost of goods sold, administrative and selling expenses, and depreciation expense
Describe the americans with disabilities act : Explain how far we have come and what still needs to be addressed (such as terminology, acceptance, and support).
Information for sookie cookies : Given the following information for Sookie's Cookies Co., calculate the depreciation expense: sales = $67,000; costs = $49,200; addition to retained earnings
What is the amount of the overall net gain or loss : What is the amount of the overall net gain or loss that Queen should recognize on the transfer of the equipment and settlement of debt/forgiveness of interest
Determine your decision to invest or not to invest : In determining your answer, please be sure to address some of the key financial indicators that helped to determine your decision to invest or not to invest.
What was the cash flow to stockholders for the year : If the company paid out $148,500 in cash dividends during 2016, what was the cash flow to stockholders for the year?
What total amount of cash did risen receive : Interest is payable semiannually on April 1 and October 1. What total amount of cash did Risen receive on the issuance of the bonds
Make no additional contributions : Assume you earn a return of 12 percent per year and make no additional contributions. What if you wait 10 years before contributing?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Ivestment securities of 10000 these securities are common

a company reports the following information as of the end of the year. investment securities of 10000. these securities

  By the end of the period 37300 units of product had been

the following labor standards have been established for a particular productstandard hours per unit 1.7

  What type of life insurance would most likely

What type of life insurance would most likely

  Identify each cost as being a direct or indirect cost

jeelani construction company is composed of two divisions 1 home construction and 2 commercial construction. the home

  Determining bad debt expense

Oddessy consulting has the following for year ended 12-31-09 before adjustments. Oddessy uses the net credit sales method of estimating bad debt expense. The journal entry for estimating bad debt expense at year end is:

  Revenue to cover the fraud

You are told that a company has a 20% profit margin and the discovered fraud has caused $1,400,000 more needed revenue to cover the fraud. How much was stolen? A. $280,000. B. $560,000. C. $1,400,000. D. $7,000,000. E. Some other amount.

  Compute gross pay

An employee's share of both FICA taxes was $4,054.50.Given that this employee did not exceed the FICA earnings limitation, compute gross pay

  In addition assume that beerbev sold 43000 barrels of beer

beerbev inc. reported the following operating information for a recent yearnet sales6880000cost of goods

  The global empires that spain and portugal established

Identify one (1) statistic or aspect of the transatlantic slave trade that you find most revealing about the human cost of European expansion into the New World. Slavery has been an accepted part of most societies covered in this course, though in..

  In its 2010 annual report xyz co reported beginning total

in its 2010 annual report xyz co. reported beginning total assets of 32.0 billion ending total assets of 49.2 billion

  Starting elementary school intervention plans

Alexander Morris is a young boy ready to start the first grade at his local School. The first grade teacher is Mrs. Charles. Alexander is like other young boys in that he likes to play and he always seems happy. In this respect school will be n..

  Discuss financial statements of manufacturing companies

Identify any common difference between financial statements of manufacturing companies and financial statements of companies which only buy and resell

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd