Question
ABC Corp is struggling financially. Prior to any debt renegotiations, they have assets valued at about $13 million and liabilities in the amount of $15
ABC Corp is struggling financially. Prior to any debt renegotiations, they have assets valued at about $13 million and liabilities in the amount of $15 million. As a result of their financial struggles, they negotiate with one of their vendors to reduce an outstanding liability. ABC Corp is able to secure a $1 million reduction on an outstanding debt. Is there gross income?
What if the debt reduction is $3 million?
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
