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Ivanhoe Company owes $175,000 plus $15,200 of accrued interest to Shamrock State Bank. The debt is a 10-year, 10% note. During 2025, Ivanhoe's business deteriorated
Ivanhoe Company owes $175,000 plus $15,200 of accrued interest to Shamrock State Bank. The debt is a 10-year, 10% note. During 2025, Ivanhoe's business deteriorated due to a faltering regional economy. On December 31, 2025, Shamrock State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $329,000, accumulated depreciation of $180,950, and a fair value of $152,000. 
No. Date Account Tities and Explanation Debit Credit tranbee Company sDebtork: 1 December 31. 2025 Shamrock suate bankiCrediton: 2. December
Ivanhoe Company owes $175,000 plus $15,200 of accrued interest to Shamrock State Bank. The debt is a 10-year, 10% note. During 2025, Ivanhoe's business deteriorated due to a faltering regional economy. On December 31, 2025, Shamrock State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $329,000, accumulated depreciation of $180,950, and a fair value of $152,000.
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