XYZ Inc is going through a reorganization and will do an exchange of its bonds after...
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XYZ Inc is going through a reorganization and will do an exchange of its bonds after discussions with lenders. It currently has $169,789 of 10.39% debenture bonds outstanding. These bonds will have their coupon interest adjusted down to 3.97% which is far below the current interest rates. The present value of the future cash payments discounted at the correct market rate today amounts to $157.067. In the journal entry to record this exchange, how much will be debited or credited to the Reorganization Account? O a. $12.404 O b. $13,040 O. $12,722 Od. $11,768 Oe. $12,086 XYZ Inc is going through a reorganization and will do an exchange of its bonds after discussions with lenders. It currently has $169,789 of 10.39% debenture bonds outstanding. These bonds will have their coupon interest adjusted down to 3.97% which is far below the current interest rates. The present value of the future cash payments discounted at the correct market rate today amounts to $157.067. In the journal entry to record this exchange, how much will be debited or credited to the Reorganization Account? O a. $12.404 O b. $13,040 O. $12,722 Od. $11,768 Oe. $12,086
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Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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