on (1) Leeds Corporation entered into a troubled debt restructuring agreement with their local bank. The...

 

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on (1) Leeds Corporation entered into a troubled debt restructuring agreement with their local bank. The bank agreed to accept land with a carrying amount of $360,000 and a fair value of $540,000 in exchange for a note with a carrying amount of $765,000. Ignoring income taxes, what amount should Leeds report as a gain on its income statement? a) $0. b) $180,000. c) $225,000 d) $405,000. (2) The following information pertains to the transfer of real estate in regards to a troubled debt restructuring by North Co. to Bell Co. in full settlement of North's liability to Bell: Carrying amount of liability settled $470,000 Carrying amount of real estate transferred $300,000 Fair value of real estate transferred $350,000 What amount should North report as ordinary gain (loss) on the transfer of real estate? a) $30,000) b) $30,000 $120,000 di $50,000 on (1) Leeds Corporation entered into a troubled debt restructuring agreement with their local bank. The bank agreed to accept land with a carrying amount of $360,000 and a fair value of $540,000 in exchange for a note with a carrying amount of $765,000. Ignoring income taxes, what amount should Leeds report as a gain on its income statement? a) $0. b) $180,000. c) $225,000 d) $405,000. (2) The following information pertains to the transfer of real estate in regards to a troubled debt restructuring by North Co. to Bell Co. in full settlement of North's liability to Bell: Carrying amount of liability settled $470,000 Carrying amount of real estate transferred $300,000 Fair value of real estate transferred $350,000 What amount should North report as ordinary gain (loss) on the transfer of real estate? a) $30,000) b) $30,000 $120,000 di $50,000

Answer rating: 100% (QA)

1 Given data Carrying amount Fair value note with carrying amount 765000 Find 360000 54... View the full answer