Testbank Problem 131 Sunland Company, which owes Bramble Corp. $4,080,000 in notes payable, is in financial difficulty. To eliminate the debt, Bramble agrees to accept from Sunland land having a fair value of $3,111,000 and a recorded cost of $2,295,000.

Compute the amount of gain or loss to Sunland Company on the transfer (disposition) of the land.

Compute the amount of gain or loss to Sunland Company on the restructuring of the debt.

Prepare the journal entry on Sunland's books to record the restructuring of this debt.

Compute the gain or loss to Bramble Corp. from restructuring of its receivable from Sunland. on restructured debt

Prepare the journal entry on Bramble 's books to record the restructuring of this receivable.