This is an accounting question, not a GnuCash question. But for what
it's worth, here is my answer:

It's 120K of income: a 600K asset (a debit) was traded for a 720K
reduction in a liability (also a debit), thus increasing your equity by
120K (a credit).

Nice work if you can get it!

On 2026-03-31 16:08, Fred Tydeman wrote:
> In a foreign country, I had loaned a developer 600K of their currency.
> He had been making interest only payments for some time.
> He paid off the 600K loan by converting it into a 720K downpayment on
> the loan (I now have from him) to buy an apartment he will build for me.
> What is the 120K difference?  How do I record it?
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com
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