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Kingbird Co. owes $201.100 to Oriole Inc. The debt is a 10-year, 11% note. Because Kingbird Co. is in financial trouble, Oriole Inc. agrees
Kingbird Co. owes $201.100 to Oriole Inc. The debt is a 10-year, 11% note. Because Kingbird Co. is in financial trouble, Oriole Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $87,800 and a fair value of $134,500. a. Prepare the journal entry on Kingbird's books for debt restructure. b. Prepare the journal entry on Oriole's books for debt restructure.
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Intermediate Accounting IFRS Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
2nd Edition
1118443969, 978-1118443965
