CHAPTER 10
Principal Interest 13%, 5-year note $2,000,000 $260,000 15%, 4-year note 3,500,000 525,000 $5,500,000 $785,000 ... The income statement will reflect a before tax gain of $55,000 if the exchange has commercial substance. This gain will increase the reported income on this year’s financial statements. ... the company is able to pay its ... ................
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