Exhibit 14-12 Sharon owes Lawrence Co. $15,000 on a note payable, plus $3,000 of unpaid interest. Lawrence agrees to accept equipment in full settlement of the debt. The equipment is recorded on Sharon's books at $12,000, and it is currently worth $14,200.
-Refer to Exhibit 14-12. What total amounts of extraordinary gains should be recorded by Sharon on this troubled debt restructuring?

Question

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The Answer of Exhibit 14-12 Sharon owes Lawrence Co. $15,000 on a note payable, plus $3,000 of unpaid interest. Lawrence agrees to accept equipment in full settlement of the debt. The equipment is recorded on Sharon's books at $12,000, and it is currently worth $14,200.
-Refer to Exhibit 14-12. What total amounts of extraordinary gains should be recorded by Sharon on this troubled debt restructuring?

Exhibit 14-12 Sharon Owes Lawrence Co