Use the Following Information for Questions 44-46

question 91

Multiple Choice

Use the following information for questions 44-46.
On December 31, 2020, Diaz Corp. is in financial difficulty and cannot pay a $ 900,000 note with $ 90,000 accrued interest payable to Cameron Ltd., which is now due. Cameron agrees to accept from Diaz equipment that has a fair value of $ 435,000, an original cost of $ 720,000, and accumulated depreciation of $ 345,000. Cameron also forgives the accrued interest, extends the maturity date to December 31, 2022, reduces the face amount of the note to $ 375,000, and reduces the market interest rate of 6%, with interest payable at the end of each year.
-Diaz should recognize a gain or loss on the transfer of the equipment of

• A) $ 0.
• B) $ 60,000 gain.
• C) $ 90,000 gain.
• D) $ 285,000 loss.

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Send Backward

A command in graphic design software that moves the selected object one level back in the stacking order, behind other objects.

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