(Answered) Question - gittian co owes 199800 to city inc the debt is a

Accounting

Question - Gittian Co. owes $199,800 to City Inc. The debt is a 10 -year, 11% note. Because Gittian Co. is in financial trouble, City Inc. agrees to accept some property and cancel the entire debt. The property has a book value of $90,000 and a fair market value of $140,000.

a) Prepare the journal entry on Gittian's books for debt restructure.

b) Prepare the journal entry on City's books for debt restructure.

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