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NEXT Testbank Multiple Choice Question 104 On December 31, 2018, Crane Company is in financial...

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NEXT Testbank Multiple Choice Question 104 On December 31, 2018, Crane Company is in financial difficulty and cannot pay a note due that day. It is a $3100000 note with $310000 accrued interest payable to Wildhorse, Inc. Wildhorse agrees to accept from Crane equipment that has a fair value of $1450000, an original cost of $2410000, and accumulated depreciation of $1140000. Wildhorse also forgives the accrued interest, extends the maturity date to December 31, 2021, reduces the face amount of the note to $1270000, and reduces the interest rate to 5%, with interest payable at the end of each year. Crane should recognize a gain on the partial settlement and restructure of the debt of $499500. $0. $63500. $399500. Click if you would like to Show Work for this question: Open Show Work

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