•ABC Corp is struggling financially. Prior to any debt renegotiations, they have assets valued at about $13 million and
Posted: Sat Feb 19, 2022 2:34 pm
•ABC Corp is struggling financially. Prior to any debt
renegotiations, they have assets valued at about $13 million and
liabilities in the amount of $15 million. As a result of their
financial struggles, they negotiate with one of their vendors to
reduce an outstanding liability. ABC Corp is able to secure a $1
million reduction on an outstanding debt. Is there gross
income?
•What if the debt reduction is $3 million?
renegotiations, they have assets valued at about $13 million and
liabilities in the amount of $15 million. As a result of their
financial struggles, they negotiate with one of their vendors to
reduce an outstanding liability. ABC Corp is able to secure a $1
million reduction on an outstanding debt. Is there gross
income?
•What if the debt reduction is $3 million?