Question: KSA Development Co. sold a corner lot to UAE Co. as a restaurant site. KSA accepted in exchange a five-year note having a maturity value

KSA Development Co. sold a corner lot to UAE Co. as a restaurant site. KSA
accepted in exchange a five-year note having a maturity value of SAR 45,200. The
land originally cost KSA 22,000. At the date of sale the land had a fair market value
of 40,000 . KSA uses the fair market value of the land, SAR 30,000, as the present
value of the note. KSA therefore records the gain loss on sale as :
Debit loss on Sale of Land 8,000
Credit Gain on Sale of Land 8,000
Credit Gain on Sale of Land 10,000
Debit loss on Sale of Land 10.000
please show step by step the correct answer

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Pina Company had available at the end of 2025 the following information. Pina Company Comparative Balance Sheets As of December 31, 2025 and 2024 2025 2024 Cash $9,960 $4,010 Accounts receivable...

Q:

Please show step by step Oasis Development Co. sold a corner lot to Rusty Pelican as a restaurant site. Oasis accepted in exchange a five-year note having a maturity value of $35,247 and no stated...

Q:

Hello again, this is another class and I need your help again. I misunderstood the start date of the class so I'm a bit late for this first week so I'm sorry for having to ask you to finish some of...

Q:

Hello again, this is another class and I need your help again. I misunderstood the start date of the class so I'm a bit late for this first week so I'm sorry for having to ask you to finish some of...

Q:

KUMAR FOOD CORPORATION: PRODUCT AND MARKET GROWTH STRATEGIES It was May 2017 when Neeraj Kumar, the owner of Kumar Food Corporation (KFC), held a brainstorming session with his marketing and sales...

Q:

Outback Steakhouse: Fueling the Fast Growth Company Marilyn L. Taylor, D.B.A Krishnan Ramaya, Ph.D George M. Puia, Ph.D Since the company's initial public offering in June of 1991, Wall Street...

Q:

CASE 32 Panera Bread Company (2010): Still Rising Fortunes? Joyce P. Vincelette and Ellie A. Fogarty BREADESSENTIAL AND BASIC, but nonetheless specialhas transcended millennia. A master baker...

Q:

. Question - Explain whether the product and geographic diversification coexist for OYO. (International Strategic Management) Ivey Publishing 9B19M123 OYO: GLOBAL EXPANSION Arpita Agnihotri and...

Q:

Hi, I need help with this document. It is due 06/06/2017 11:59, Please help me! Project Six: Acquisition Contingencies Background In 2011, a construction materials manufacturing company (Construct)...

Q:

DEvin development co sold a building to Timex Co. as a restaurant site on Jan 1,2009.Devin accepted in exchange a five-year note having a maturity value of $100,000 and no stated interest rate. The...

Q:

RadioHead Development Co. sold a building to ColdPlay Co. as a restaurant site on Jan 1, 2009. RadioHead accepted in exchange a five-year note having a maturity value of $100,000 and no stated...

Q:

Samantha's utility function is UK) = Y0.5. She tries to maximize her expected utility. She owns a car for business that she will have to replace if it is stolen. If her car is not stolen, her net...

Q:

In the casino game called highlow, there are three possible bets. Assume that $1 is the size of the bet. A pair of fair six-sided dice is rolled and their sum is calculated. If you bet low, you win...

Q:

Which step in the rate making process involves adding additional charges to account for inflation and acquisition cost

Q:

a=2 b= 0 c= 2 d=0 e=0 f=9 g=3 5. Draw the Network diagram for the following project. Estimate the Earliest start time and Latest finish time for each activity. If every day it cost 200 rials for this...