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Q3. ABC Co. owes SAR 433,000 to XYZ Inc. The debt is a 10-year, 11% note. Because ABC Co. is in financial trouble.XYZ Inc.
Q3. ABC Co. owes SAR 433,000 to XYZ Inc. The debt is a 10-year, 11% note. Because ABC Co. is in financial trouble.XYZ Inc. agrees to accept some property and cancel the entire debt. The property has a book value of SAR 150,000 and a fair value of SAR 230,000. Prepare the journal entry on ABC's books for debt settlement. (2 mark)
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College Accounting
Authors: Heintz and Parry
20th Edition
1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192
