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On 31 July 2020 ABC company owes $333,000 to ZXY Company if the long term notes ( 10 years , i= 11% ) . ZXY

On 31 July 2020 ABC company owes $333,000 to ZXY Company if the long term notes ( 10 years , i= 11% ). ZXY company agrees to accept a machine to settle the debt as ABC company is having financial problems. The carrying amount of the machine is $150,000 and the fair value of the machine is $230,000.

Required:

Prepare the necessary journal entry by ABC company to record the settlement of the debt.

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