Book Value Falr Value Receivables $ 80,000 200,000 300,000 $ 90,000 210,000 Inventory. Buildings Liabilities . Common stock. Additional paid-in capital Retained earnings (deficit) 300,000 330,000 (70,000)
Book Value Falr Value Receivables $ 80,000 200,000 300,000 $ 90,000 210,000 Inventory. Buildings Liabilities . Common stock. Additional paid-in capital Retained earnings (deficit) 300,000 330,000 (70,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Larisa Company is exiting bankruptcy reorganization with the following accounts:
The company’s assets have a $760,000 reorganization value. As part of the reorganization, the company’s owners transferred 80 percent of the outstanding stock to the creditors.
Prepare the
Transcribed Image Text:Book Value
Falr Value
Receivables
$ 80,000
200,000
300,000
$ 90,000
210,000
Inventory.
Buildings
Liabilities .
Common stock.
Additional paid-in capital
Retained earnings (deficit)
300,000
330,000
(70,000)
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