User Account

All Pages

What total gains should X Corp record

Assignment Help Accounting Basics
Reference no: EM132633182

Question - On December 31, 2016, X Corp. was indebted to Zyland Co. on a P1,000,000, 10% note. Only interest had been paid to date, and the remaining life of the note was 2 years. Because X Corp. was in financial difficulties, the parties agreed that X Corp. would settle the debt on the following terms:

Settle one-half of the note by transferring land with a recorded value of P400,000 and a fair value of P450,000.

Settle one-fourth of the note by transferring 10,000, P1 par, ordinary shares with a fair market value of P15 per share.

Modify the reducing the remaining one-fourth of the note by reducing the interest rate to 5% for the remaining 2 years and reducing the principal to P150,000.

Required - What total gains should X Corp. record in 2016 from this troubled debt restructuring?

a. P100,000

b. P200,000

c. P213,024

d. P313,024

Reference no: EM132633182

Questions Cloud

Briefly explain what is wrong with the complain : Briefly explain what is wrong with the complain mentioned above. What would be the solution or best practice to the problem mentioned
Why is most fundamental threat : What terrorism today poses the most significant threat to the United States? Why is this the most fundamental threat,
Evaluate the statement for budgets are an integral part : Budgets are an integral part of management control systems. Evaluate the statement and provide the real life example. Explain in detail
Domestic considerations make foreign and security policies : How do domestic considerations make foreign and security policies different than they would be on the basis of international and strategic considerations alone?
What total gains should X Corp record : Settle one-half of the note by transferring land with a recorded value of P400,000 and a fair value of P450,000. What total gains should X Corp record
Determine the total cash dividends paid : Determine the total cash dividends paid during the four years with preferred stock as cumulative and then calculate it again with the preferred stock
Department of state and department of defense : Describe the resource disparity between the Department of State and the Department of Defense. How is the concept of diplomacy changing at the State Department?
What is the gross profit for year end June : Use the following information from the records of Mooree Ltd. to determine the gross profit for the year ended 30 June 2019
Explain in detail the audit trail document : Explain in detail the audit trail document as follows: Payment of electricity costs and Purchase of operational vehicles

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