Halvor has asked to restructure its 5 million dollar note outstanding.It has 3 y

Question

Halvor has asked to restructure its 5 million dollar note outstanding.It has 3 years remaining and pays 10 % interest. Present Market rate is 12%.It was issued at face value

A) Bank accepts common stock valued at 3,700,000 in exchange.Common Stock has par value of 1,700,000

B) Bank accepts land in exchange.Land has book value of 3,250,000 and fair value 4,000,000

C) Bank says you do not have to pay interest over 3 year period

D) Bank reduces principal to 4,166,667 and require interest in 2nd and 3rd yr at 10%

Journal entries for both sides on all four

Explanation / Answer

time over re post it! and rate this half plz

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