(1) (ul) (IV) Reduces gross receivables Reduces net receivables Does not affect total assets Increases net receivables (1) and (iii) (i) only (1) and (iv) C) only QUESTION 37 Use the information below for the next two questions: Company, Inc., which owes Bank Inc. $330,000 in notes payable with unamortized discount balance of $30.000, is in financial difficulty. To eliminate the debt. Bank agrees to accept from Company land having a fair market value of $270,000 and a carrying value of $250,000 on Company's balance sheet. How much gain should Company, Inc., recognize on the disposition of the land and settlement of the debt, respectively? $20,000 and 560,000 $30,000 and $50,000 $30,000 and $20,000 $20,000 and $30,000 QUESTION 38 The journal entry on Bank's books to record the settlement of this receivable is: Land 270,000 Allowance for Doubtful Accounts 30,000 Notes Receivable 300.000 Land Discount Allowance for Doubtful Accounts Notes Receivable 270.000 30.000 30.000 330,000 Land Discount Bad Debt Expense 270,000 30,000 30.000 S Click Save and Submit to save and submit. Click Save All Answers to save all answers