If the reorganization value of a company emerging from bankruptcy is larger than the fair values that
Question:
If the reorganization value of a company emerging from bankruptcy is larger than the fair values that can be assigned to specific assets, what accounting is made of the difference?
a. Because of conservatism, the difference is simply ignored.
b. The difference is recorded as an expense immediately.
c. The difference is capitalized as goodwill.
d. The difference is recorded as a professional fee.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
The answer is c The difference is capitalized as goodwill If the reorganization value of a company e...View the full answer
Answered By
Santosh Reddy
I have been a tutor for over 10 years. I have experience working with students of all ages, from elementary school to college. I have also tutored students with different learning styles and abilities. I am familiar with a variety of subjects, including math, science, English, history, and Spanish. I am able to adapt my teaching style to meet the needs of each individual student. I am patient and supportive, and I strive to help my students succeed.
I believe that one of the most important aspects of tutoring is the ability to build a rapport with the student. I work to create a positive and supportive learning environment where the student feels comfortable asking questions and seeking help. I also believe that it is important to be flexible and accommodating to the student's needs. I am willing to adjust my schedule and meeting times to ensure that the student is able to get the help they need.
I am confident in my ability to help students improve their grades and succeed in their studies. I have a proven track record of success, and I am committed to helping my students reach their goals. If you are looking for a tutor who is experienced, knowledgeable, and supportive, then please contact me. I would be happy to discuss your needs and how I can help you achieve success.
0.00
0 Reviews
10+ Question Solved
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Question Posted:
Students also viewed these Business questions
-
The book value of a company is $15 per share and the total common stockholders equity is $45 million. How many shares of common stock has this corporation issued?
-
How should a company emerging from bankruptcy reorganization report its liabilities (other than deferred income taxes)? a. At their historical value b. At zero because of fresh start accounting c. At...
-
The reorganization value of a firm emerging from Chapter 11 bankruptcy is used to determine the accounting of the reorganized company. Explain reorganization value as used in FASB ASC 852.
-
The enzyme Stell participates in several distinct MAP kinase signaling pathways in the budding yeast S. cerevisiae. What is the substrate for Ste 11 in the mating factor signaling pathway? When a...
-
Suppose that a random variable X has the geometric distribution with unknown parameter p (0 < p < 1). Show that the only unbiased estimator of p is the estimator (X) such that (0) = 1 and (X) = 0 for...
-
Calculate the markup percentage on the following order placed by the women's department: 10 dozen earrings costing $60 per dozen to retail for $12 each. 1500 sweaters costing $25 each to retail for...
-
List three ways to get input from the console and convert that input to the desired data type.
-
(Amortization of Accumulated OCI (G/L), Corridor Approach, Pension Expense Computation) The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses. Other...
-
Calculate the total billing amount for Jonas and his associate for their ( 1 ) first client assessment session and ( 2 ) second client assessment session. State whether they are the same or different...
-
The records of Andrews Company reflect the following data: Work in process, beginning of the month - 4,500 units; 1 / 3 completed at a cost of $2,400 for materials, $825 for labor, and $5,000 for...
-
A food products company believes that storing frozen foods at low temperatures for several weeks might cause a noticeable weight loss in the product. Some data were collected to test this belief, as...
-
An engineer working on the auto assembly line is preparing to estimate the mean time required to install a dashboard. Assuming a required standard deviation of 10 seconds in the estimated mean,...
-
Determine how many personal and dependency exemptions would be available in each of the following independent situations. Specify whether any such exemptions would come under the qualifying child or...
-
The primary role of a functional strategy is to: specify how to build and strengthen the skills, expertise, and competencies needed to execute operating - level strategies successfully. support and...
-
Why you believe major automobile manufacturers do not make ambulances? What alternate strategy would your recommend that Wheeled Coach use to improve their currently assembly line approach? Why is it...
-
1. what is American Airlines airline company products and service? 2. what is American Airlines airline company's supply chain crisis impact in 2022? 3. The impact on sales or revenue or profit for...
-
M2D9: The ADA Act 1-Discuss what readily achievable barrier removal means. What are some modifications that can be made to an existing property to meet this requirement? 2-Discuss what is required...
-
Explain strategy in an elevator pitch. First, an elevator pitch is something you can say in the span of an elevator ride (7-10 seconds). I'll give you 15 seconds. Write an elevator pitch that...
-
An equimolar mixture of helium and argon gases is to be used as the working fluid in a closed-loop gas-turbine cycle. The mixture enters the turbine at 2.5 MPa and 1300 K and expands isentropically...
-
Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevelands outstanding stock. No excess amortization resulted from these...
-
The unadjusted trial balance for the general fund of the City of Orchard Park at December 31, 2011, is as follows: Supplies on hand at December 31, 2011, are $3,000. The $50,000 encumbrance relates...
-
The preclosing account balances of the general fund of the City of Batavia on June 30, 2012, were as follows: Debits Cash...................... $ 80,000 Taxes receivabledelinquent............ 160,000...
-
The Town of Tyler approved the following general fund budget for the fiscal year July 1, 2011, to June 30, 2012: TOWN OF TYLER GENERAL FUND BUDGET SUMMARY FOR THE YEAR JULY 1, 2011 TO JUNE 30, 2012...
-
Jackson, Inc. Adjusted Trial Balance 12/31/2020 Dr. Cr. Cash 25,000 Accounts Receivable 18,000 Office Supplies 24,000 Prepaid Rent 36,000 Equipment 245,000 Accumulated Depreciation 20,000 Accounts...
-
Assume the following: Estimated direct labor hours used to calculate the predetermined overhead rate = 19,500 The manufacturing overhead applied to production = $105,000 The total direct labor hours...
-
Job #335 requires work in the following departments: Machining: 16 hours (all automated) Sanding: 4 hours (all direct labor) Painting: 8 hours (including dry time of 6 hours) The company uses...
Study smarter with the SolutionInn App