On January 1, 2012, Duke Company negotiated an agreement to modify the terms of a $500,000 note with $38,000 of accrued interest. Payments of $25,000 cash will be made each quarter end up to and including June 30, 2016 .
Which of the following is true about this troubled debt restructuring? a. The $25,000 payments will include principal and interest
b. A gain of $88,000 will be recognized.
c. The present value of the payments must be calculated to determine if there is a gain or loss.
d. None of the above is true.
b
Business
You might also like to view...
Equity securities in which the investor owns less than 20% ownership in the voting stock of the investee can be ________
A) significant interest investments B) controlling interest investments C) held-to-maturity investments D) either trading investments or available-for-sale investments
Business
The amount of money companies should spend on identity management can be measured through risk analysis
Indicate whether the statement is true or false.
Business