The way a debtor accounts for the restructuring depends on the extent of the reduction in cash

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The way a debtor accounts for the restructuring depends on the extent of the reduction in cash payments called for by the restructured arrangement. Describe, in general, the accounting procedure for the two basic cases: when, under the new agreement, total cash payments 

(a) Are less than the book value of the debt or 

(b) Still exceed the book value of the debt.

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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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