Equipment with a Fair Value of $65,000 and a Cost

question 42

Short Answer

Equipment with a fair value of $65,000 and a cost basis of $60,000 is transferred to a creditor in partial settlement of a debt of $150,000 plus accrued interest of $7,500. The balance of the debt will be satisfied by 3 equal payments of $30,000 over the next three years. Which of the following journal entries best records the restructure?

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Definitions:

Mission Statement

A formal summary of the aims and values of a company, organization, or individual, guiding its strategies, purpose, and decision-making.

Brand Voice Statement

A declaration that encapsulates the personality, tone, and manner in which a brand communicates to its audience.

Vision Statement

A vision statement is a declaration of an organization's long-term goals and aspirations, outlining what the organization hopes to achieve in the future.

SMART Criteria

A set of guidelines for setting clear, attainable objectives, standing for Specific, Measurable, Achievable, Relevant, and Time-bound.