The branch in Malaysia of Luzon corporation, a Philippine enterprise has property and equipment with a cost
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Question:
Sunrise company has bonds payable with face value of P10,000,000 and a carrying amount of P9,600,000. In addition, unpaid interest on the bonds has been accrued in the amount of P500,000. The creditor has agreed to the settlement of the bonds payable in exchange for 100,000 shares of P50 par value. The shares have a current market value of P9,000,000. The fair value of the bonds payable is P9,200,000. If the fair value of the equity instruments is used, how much is the gain on extinguishment of debt?
Related Book For
Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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