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A company is going through a bankruptcy reorganization. It has a $100,000 liability (Note A) that is unsecured and, therefore, subject to compromise. The company
A company is going through a bankruptcy reorganization. It has a $100,000 liability (Note A) that is unsecured and, therefore, subject to compromise. The company expects to settle this debt for $64,000. The company also has a $250,000 liability (Note B) that is not subject to compromise because it is secured by a piece of land that can be sold for well above $250,000. Which of the following is not true? Multiple choice question. Note A should be reported on the company's balance sheet at $100,000 Note B should be reported at $250,000. Note A should be reportedly separately from Note B. Note A should be reported on the company's balance sheet at $64,000
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