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Pear Company owes $333,000 to Orange Company. The debt is a 10-year, 11% note. Because Pear Company is in financial trouble, Orange Company agrees to

Pear Company owes $333,000 to Orange Company. The debt is a 10-year, 11% note. Because Pear Company is in financial trouble, Orange Company agrees to accept Pear Company's land and cancel the entire debt. The land has a book value of $150,000 and a fair value of $230,000. Prepare the journal entry on Pear's books for debt settlement

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