true or false

1. A debt restructuring is a is a method of dealing with a troubled company that may or may not be part of a court approval 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 extent 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 the 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 approve 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 be 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 so 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 those 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._______________