On the part of the debtor, debt restructuring generally will result in Group of answer choices a. gain on exchange b. gain on debt restructuring c. loss on exchange d. loss on debt restructuring
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30. On the part of the debtor, debt restructuring generally will result in
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- Who is more likely to record a loss from debt restructuring? A. depends on the situation B.creditor C.both debtor and creditor D. debtorIn the context of handling debt - like items in M&A, what is the most buyer-friendly approach for items representing a hard claim that must be paid post-close? a. Purchase price adjustments b. Escrow accounts c. Insurance policies d. Working capital adjustments e. Debt refinancingThe return which the debt holders get is called Select one: O a. None O b. Dividend O c. Interest O d. Cost O e. Profit O f. Earnings
- When a debtor is in financial difficulty and a current londer grants concessions to the debtor to refinance an existing debt arrangement, this is referred to as a O a. Troubled debt restructuring. O b. Debt extinguishment. O c. Debt modification. O d. Debt pay-off.1. How to achieve debt restructuring? 2. What are the advantages and disadvantages of debts restructuring?Which of the following transaction costs will not be included in the pro-forma adjustment to net earnings? Debt refinancing premium Other transaction costs Equity financing fees Amortization of debt financing fees
- What are the general rules for measuring gain or loss byboth creditor and debtor in a troubled-debt restructuringinvolving a settlement?Can you explain Collateralized debt obligation WI9TH AN EXPAMPLE? WHICH WILL HELP IN THE PRESNTATIONA gain or loss from debt restructuring should be A. treated as increase or decrease in Paid-in Capital B. recognized in income of the period of restructuring C. amortized over the remaining original life of the restructured loan D. allocated between the portion that is an increase (decrease) in Paid-in Capital and a portion that is recognized in the current income
- How does the difference between the book value of the debt and the reacquisition price represents either a gain or a loss on the early extinguishment of debt?25. In accounting for debt investments that are classified as FV through profit or loss: O a. any unrealized gain (loss) is reported as part of equity. b. a premium is reported separately. O c. interest income is based on nominal interest. O d. interest income is based on effective interest.5. Understanding Total Debt Ratio can help a firm know how tomanage their risk of potential bankruptcy and their ability torepay their liabilities. Y/N