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nash company owes $ 2 3 6 , 0 0 0 plus $ 2 1 , 5 0 0 of accrued interest to crane state

nash company owes $236,000 plus $ 21,500 of accrued interest to crane state bank.the debt is a 10year, 10% note.During 2020. Nash business deteriorated due to a faltering regional economy.on december 31,2020, crane state bank agrees to accept an old machine and cancel the entire debt.the machine has a cost of $383,000, accumulated depreciation of $210650 and a fair value of $ 215,000.a) prepare journal entry for nash company b) assume that , instead of tranferring the machine, Nash decides to grant 16,000 shares of its common stock ($10) which has a fair value of $215,000 in full settlement of the loan obligation.if crane state bank treats nash stock as a trading investment ,prepare the entries to record the transaction for both parties.

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