During Year 1, Camellia Company experienced nancial diculties and was likely to default on a $1,500,000, 15%,

• During Year 1, Camellia Company experienced financial difficulties and was likely to default on a $1,500,000, 15%, three-year note dated January 1 of Year 1, payable to Central National Bank. On January 15 of Year 2, the bank agreed to restructure the note and unpaid Year 1 interest of $225,000 for $1,230,000 cash, payable on January 31 of Year 2. What is the amount of gain, before income taxes, from the debt restructuring recorded by Camellia on January 31 of Year 2?

  
  

 

Answer rating: 100% (QA)

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