Answer the following True/False Questions

1. A debt restructuring is a method of dealing with a troubled company that may or may not e part of a court-approved plan
2. If in a troubled debt restructuring assets are transferred to creditors in full settlement of a debt, a gain is recognized to the extend that the fair market value of the assets transferred is less than the basis of the debt
3. A debt restructuring that involves a modification of terms and does not require court approval may not require recognition of subsequent interest expense
4. Interest expense associated with a modification of terms under a debt restructuring is measured differently, depending on whether or not the modification is part of a plan under a Chapter 11 reorganization.
5. In a quasi-reorganization, if paid-in capital in excess of par value is not sufficient to absorb a deficit in retained earnings, the par value for stock may be reduced
6. A reorganization under chapter 11 of the Bankruptcy Code Amendments will be approved by the courts even if creditors receive less than would be the case with a Chapter 7 liquidation.
7. Under the bankruptcy code, a reorganization may ne either voluntary or involuntary, yet a liquidation may be only voluntary
8. A chapter 11 reorganization plan must be approved by those creditors representing at least one-half of the total dollar amount due that class
9. Under a corporate liquidation, all unsecured creditors have equal rights to claim available assets of the corporation
10. A statement of affairs measures a deficiency- traceable to unsecured creditors without priority-as the difference between the estimated net realizable value of the assets and the amount due to the creditors
11. The dividend to general unsecured creditors is the dividend rate declared on common stock multiplied by the amount due to unsecured creditors
12. The statement of realization and liquidation reports the actual results of a liquidation whereas a statement of affairs reports estimated results