Which of the following describes the effects of a claims exchange transaction on a company’s financial statements?

Assets = Liab. + Equity Rev. – Exp. = Net Inc. Cash Flow

1. NA = NA + NA NA – NA = NA +OA
2. + = + = NA NA – NA = NA + OA
3. NA = + + - NA - + = - NA
4. All of these could repress the effects of claims exchange transaction.