contestada

During 2021, Marquis Company was encountering financial difficulties and seemed likely to default on a $300,000, 10%, four-year note dated January 1, 2019, payable to Third Bank. Interest was last paid on December 31, 2020. On December 31, 2021, Third Bank accepted $250,000 in settlement of the note. Ignoring income taxes, what amount should Marquis report as a gain from the debt restructuring in its 2021 income statement?

Respuesta :

abiolataiwo2015

Answer:

$80,000

Explanation:

Calculation for the amount that Marquis should report as a gain from the debt restructuring in its 2021 income statement

Gain from the debt restructuring=$300,000 + ($300,000 x 10%) - $250,000

Gain from the debt restructuring=$300,000+$30,000-$250,000

Gain from the debt restructuring = $80,000

Therefore amount that Marquis should report as a gain from the debt restructuring in its 2021 income statement will be $80,000

Otras preguntas