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On January 1, 2021, the debtor agrees to receive equipment with historical cost of 2,000,000 and accumulated depreciation of 700,000 and fair value of 1,000,000
On January 1, 2021, the debtor agrees to receive equipment with historical cost of 2,000,000 and accumulated depreciation of 700,000 and fair value of 1,000,000 in full settlement of the 1,200,000 note payable. The note has no existing accrued interest based on 12% interest per year. What is the amount of gain or (loss) on settlement of the note?
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