User Account

All Pages

What is the gain on debt restructuring

Assignment Help Accounting Basics
Reference no: EM132818139

Question - On January 1, 2018, Sarangani Company showed the following:

Long Term note 6,000,000

At the end of 2017, Saragani had started to experience extreme financial pressure and is in default in meeting the interest payment on its long term note. This had continued until 2018, the company did not accrue the interest for 2018. The interest rate is 10% payable every December 31.

In an aggreement with the creditor, Sarangani Corporation obtained the following changes in terms of the note.

The accrued interest is forgiven.

The principal obligation will be due on December 31, 2023.

The new interest rate is 8%

What is the gain on debt restructuring to be recognized by Sarangani?

a. 2,579,180

b. 1,600,000

c. 455,016

d. Nil

Reference no: EM132818139

Questions Cloud

Compute the weighted average cost at end of first quarter : Compute the Weighted Average Cost (WAC) at the end of the first quarter: and the allocation to the cost of goods sold and ending inventory
What is the total amount of interest charges : Consider a 30 year, $150,000 fixed-rate, monthly payment mortgage with a 3.60% contract rate. If all payments are made precisely as scheduled, during years 6 th
What is the young man explicitly saying about himself : What is the young man explicitly saying about himself? What can you "read between the lines"? That is, what information do you think he may be trying to.
Describe ansoffs growth matrix : Describe Ansoff's growth matrix and How can businesses use Ansoff's matrix to become successful - Explain how a business can use digital marketing
What is the gain on debt restructuring : This had continued until 2018, the company did not accrue the interest for 2018. What is the gain on debt restructuring to be recognized by Sarangani
What is the required return on the company stock : If the company has a dividend yield of 6.4%, what is the required return on the company's stock? (Round the final answer to 2 decimal places.)
What ceo will be better off because wealth has changed by : What CEO will be better off because wealth has changed by? You are invested in? GreenFrame, Inc. The CEO owns 4% of GreenFrame
A discussion on options strategies : You are a portfolio manager and you manage several fund that make extensive use of options in combination with equities. The portfolios have different investor
Identify audit procedures normally associated with events : The financial year of Sullivan & Evans Limited ended on 30 June 2020. Identify the audit procedures normally associated with subsequent events

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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