Question: Sarma Co. oes Jazmine Ltd. a $577,000, 12%, three-year note dated December 31, 2015. Sabrina has been experiencing financial difficulties, and still owes accrued interest

Sarma Co. oes Jazmine Ltd. a $577,000, 12%, three-year note dated December 31, 2015. Sabrina has been experiencing financial difficulties, and still owes accrued interest of 569,000 on the note at December 31, 2017.

Under a troubled debt restructuring, on December 31, 2017, Jazmine agrees to settle the note plus the accrued interest for land that Sabrina owns, which has a fair value of $529,000. Sabrina's original cost of the land is $422,000.

Required:

Calculate the gain/loss on disposition of

Land Calculate the gain/loss on restructuring Debt

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