On December 31, 2020, Manny Ltd. owes Stew Corp. $50,000 on a 10% note payable. two years of interest is also unpaid and due. Manny cannot pay off the debt. Stew agrees to reduce the principal amount to $30,000, forgive the accrued interest owed, extend the due date to December 31,2023, and reduce the interest to 5% per year for the extended period. What amount of gain should Manny record?

Answer rating: 100% (QA)

To determine the amount of gain that Manny should record we need to calculate the original a... View the full answer