At December $31,2023,$ Oscar Ltd$.$ owes Wilde Corp. for a $$300,000$ note payable, plus accrued interest

of $$27,000.$ Oscar is now in financial

difficulty and cannot repay Wilde. To settle the debt, Wilde agrees

to accept from Oscar equipment with a fair value of $$285,000,$ an original cost of $$420,000,$ and

accumulated depreciation to date of $$98,000.$

Instructions

a$)$

Calculate the gain or loss to Oscar on the settlement of the debt.

b$)$

Calculate the gain or loss to Oscar on the transfer of the equipment.

c$)$

Prepare the journal entry on Oscar's books to record the settlement of the debt.

d$)$

Prepare the journal entry on Wilde's books to record the settlement of the receivabl