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Pumpkin Company is going through bankruptcy reorganization. It signed a $290,000 note payable prior to the order for relief. The company believes that this note
Pumpkin Company is going through bankruptcy reorganization. It signed a $290,000 note payable prior to the order for relief. The company believes that this note will be settled for $78,000 in cash. It is also possible that the creditor will instead take a piece of land that cost the company $68,000 but is valued at $90,000. On a balance sheet prepared during the reorganization period, how will this debt be reported?
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