A company is coming out of reorganization with the following accounts: The companys assets have a $760,000

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A company is coming out of reorganization with the following accounts:

The company€™s assets have a $760,000 reorganization value. As part of the reorganization, the company€™s owners transferred 80 percent of the outstanding stock to thecreditors.

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Advanced Accounting

ISBN: 978-0077431808

10th edition

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

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Question Posted: Oct 04, 2014 03:41 AM

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A company is coming out of reorganization with the following accounts: The companys assets have a $760,000

Question:

Book Value Receivables .. . 80,000 Inventory Buildings Liabilities . - . . . - . . 300,000 Common stock Additional paid-in capital20,000 Retained earnings (deficit)(70,000) Fair Value S90,000 210,000 400,000 300,000 300,000 330,000

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The individual assets of this company have a total fair value of 700000 but a reorganization v...View the full answer

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