Total Postpetition Liabilities (total liabilities after prepetition claim) reorganization $150,000

Prepetition liabilities (liabilities before prepetition claim) reorganization:

Account payable $ 300,000

Taxes payable $ 80,000

Interest payable $ 45,000

Bank Loan $ 500,000

Capital stock $ 600,000

The Reorganization Plan:

1. Bank agreed to receive common stock $200,000 and senior debt $180,000

2. The priority tax claims (taxes payable) will be paid

3. Interest payable will be forgiven

4. Creditor (Account payable) agreed to receive common stock $100,000 and senior debt $90,000

5. Equity holders will exchange their stock for $100,000 common stock.

Questions:

1. Calculate reorganization value !

2. Calculate gain on debt discharge & prepare debt settlement journal before prepetition claim and exchange stock by equity holders.

Account	Before prepetition claim	Reorganization value	Gain on debt discharge
Bank loan
Tax payable
Interest payable
Account payable
Postpetition Liabilities
Total Liabilities
Capital stock
Total

Please provide step-by-step accounting calculation.

Thank you and really appreciate for the help!