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The questions are indicated on the picture. 20. A company with a substantial deficit undertakes a quasi- reorganization. Certain assets will be written down to

The questions are indicated on the picture.

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20. A company with a substantial deficit undertakes a quasi- reorganization. Certain assets will be written down to their present fair market values. Liabilities will remain the same. How would the entries to record the quasi-reorganization affect each of the following? Contributed Capital Retained Earnings a. Decrease No effect b. Increase No effect c. No effect Increase d. Decrease Increase

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