During 2013, Marquis Company was encountering financial difficulties and seemed likely to default on a $500,000, 8%, four-year note dated January 1, 2011, payable to Third Bank. Interest was last paid on December 31, 2012. On December 31, 2013, Third Bank accepted $350,000 in settlement of the note. Ignoring income taxes, what amount should Marquis report as a gain from the debt restructuring in its 2013 income statement?

Answer rating: 100% (QA)

Solution Gain from debt ... View the full answer