rrajan Newbie
Joined: 14 Oct 2009 Location: Canada
Online Status: Offline Posts: 34
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Posted: 15 Oct 2009 at 06:37 | IP Logged
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Can somebody help to explain the following Weily FAR 2009 edition Page 283 Interests that continue to be held
Facts Given Receivable's Fair value - 16,500 Receivable's book value - 15,000 Servicing asset - 700 Seller sells 80% of receivables
Journal entry Cash Dr. - 13200 Servicing assets Dr. - 480 Receivables Cr.- 12,000 Gain Cr. - 1,680
My doubt is how they arrive 480 and how bookvalue 0f 80% allocated between receivables sold and servicing asset?
Thanks in advance
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