高級會計學（第10版）習題答案 ch17-Beams10e-sm

Chapter17

CORPORATELIQUIDATIONSandREORGANIZATIONS

AnswerstoQuestions

1Equityinsolvencyoccurswhenadebtorisunabletopayitsdebtsastheycomedue.Bankruptcyinsolvency

occurswhenadebtor'sliabilitiesexceedthefairvalueofallassets.

2Abankruptcyproceedingisdesignatedvoluntaryifthedebtorcorporationfilesthepetitiontoplaceitself

undertheprotectionofthebankruptcycourtandinvoluntaryifcreditorsfilethepetitiontobringthedebtor

intobankruptcycourt.Aninvoluntarypetitionmaybefiledbyasinglecreditorwithanunsecuredclaimof

$12,300ormoreiftherearefewerthantwelveunsecuredcreditors.Otherwise,threeormoreentitieswith

unsecuredclaimstotalingatleast$12,300mustfileinordertocommenceaninvoluntarycase.The

requirementsarethesameforChapter7andChapter11cases.

3ThedutiesoftheU.S.trusteearetomaintainandsuperviseapanelofprivatetrusteeseligibletoservein

Chapter7cases,toserveastrusteeorinterimtrusteeinsomebankruptcycases,tosupervisethe

administrationofbankruptcycases,andtopresideovercreditormeetings.Bankruptcyjudgesstill

supervisecasesindistrictswithoutU.S.trustees.

4Thedebtorcorporationinabankruptcycasehasthefollowingduties:(1)tofilealistofcreditors,a

scheduleofassetsandliabilities,andastatementofthedebtor'sfinancialaffairs;(2)tocooperatewiththe

trusteesothatthetrusteemayperformhisduties;(3)Tosurrenderallproperty,includingbooks,

documents,records,andsoon,tothetrustee;and(4)toappearathearingsofthebankruptcycourtas

required.

5AtrusteeisnotappointedinallTitle11cases.InChapter7casesatrusteewillbeelectedbyunsecured

creditorsifamajorityvoteinamountofholderswithatleast20percentoftheclaimsisobtained.

Otherwise,anappointedinterimtrusteeservesastrustee.InChapter11casesatrusteeisappointedonlyif

deemednecessarybythecourt,butotherwise,thedebtorremainsinpossessionoftheestateandperforms

thedutiesofatrustee.Within30daysfromthetimethecourtorderstheappointmentofatrusteeina

Chapter11case,apartyininterestmayrequesttheelectionofatrustee.

?2009PearsonEducation,Inc.publishingasPrenticeHall

17-2CorporateLiquidationsandReorganizations

6Thetrusteeinaliquidationcasetakespossessionofthedebtor'sestate,convertsestateassetsintocash,and

distributestheproceedsasdirectedbythecourt.Healsoperformsotherdutiessuchasinvestigatingthe

financialaffairsofthedebtor,providinginformationabouttheestatetopartiesofinterest,examining

creditorclaimsandobjectingtothosethatappearimproper,operatingthedebtor'sbusinessifauthorizedto

dosobythecourt,providingfinancialreportsandsummariesabouttheestatetothecourt,andfiling

reportsontrusteeshipasdirectedbythecourt.

7ThepriorityrankingsinaChapter7liquidationcasearesummarizedinExhibit17-2ofthetext.The

prioritiesrecognizedforunsecuredclaims(RankII)are:(1)administrativeexpenses,(2)claimsincurred

betweenaninvoluntaryfilingandappointmentofatrustee,(3)salaryclaimsupto$10,000perindividual

earnedwithin90daysoffiling,(4)employeebenefitplancontributionclaimsupto$10,000perindividual

earnedwithin180daysoffiling,(5)individualclaimsupto$1,800forgoodsandservicespurchasedfrom,

butnotprovidedbythedebtor,and(6)claimsofgovernmentalunitsfortaxesowedbythedebtor(subject

totimerestrictions),includingtaxescollectedandwithheldforwhichthedebtorisliable.

8Fourrankswithintheunsecurednonpriorityclaimcategory(generalunsecuredclaims)are:(1)claims

allowedthatweretimelyfiled,(2)claimsallowedwhereproofwasfiledlate,(3)claimsallowedforfines,

penaltiesorforfeitures,ordamages,andarisingbeforethecourtorderforrelieforappointmentofatrustee,

and(4)claimsforinterestonunsecuredclaims.

9Theaccountant'sstatementofaffairsisafinancialstatementthatisdesignedtoprovideinformationabout

liquidationvaluesandpriorityrankingsforusebythetrustee,thecourt,creditors,andotherinterested

partiesinthedebtor'sestate.Assetsaremeasuredatexpectednetrealizablevaluesinthestatement,but

bookvaluesarealsoincludedforreferencepurposes.(TheBankruptcyActreferstoastatementofaffairs,

butthatstatementisaquestionnairethatincludesvariousfinancialandnonfinancialandlegalsection

10Adebtorcorporation'sestatemaybeliquidatedeventhoughthefilingisunderChapter11.Thiscanoccur

whenthecaseistransferredtoChapter7forliquidation.Itcanalsobecarriedoutinaccordancewithan

approvedChapter11planofreorganizationthatcallsforsaleanddistributionoftheproceedsfromthe

debtorcorporation'sestate.

11AdebtorinpossessionreorganizationcaseisaChapter11caseinwhichthebankruptcycourtdoesnot

appointatrustee,butinstead,allowsthedebtorcorporationtocarryoutthedutiesthatotherwisewouldbe

performedbyatrustee.

12AcreditorcommitteecanfileaplanofreorganizationunderaChapter11caseafter120daysfromthedate

thecourtorderforreliefisgranted.Theorderfbrreliefoccurswhenthedebtororcreditor'sfilingpetition

isapprovedbythecourt.

13Theapprovalofaplanofreorganizationrequiresacceptanceoftheplanbyatleasttwo-thirdsinamount

andoverhalfinnumberofclaimsineachclassofclaims.Further,eachclassofclaimsmustacceptthe

planornotbeimpairedunderit.Aclassofclaimsthatwouldreceivenothingifthecorporationwere

liquidatedisnotimpairedifitreceivesnothingunderaplanand,accordingly,acceptancebythatclassof

claimsisnotrequired.

?2009PearsonEducation,Inc.publishingasPrenticeHall

14PrepetitionliabilitiesaretheliabilitiesofanenterprisethatwereincurredpriortoaChapter11filing.They

arereportedattheamountsallowedbythebankruptcycourt.Prepetitionliabilitiessubjecttocompromise

arethoseliabilitiesthatmaybeimpairedbyaplanandthatareeligibleforcompromisebecausetheyare

eitherunsecuredorundersecured.

15Reorganizationvalueisanestimateofthevalueofthereconstitutedentitythatwillemergefrom

reorganization,plustheexpectednetrealizablevalueoftheassetsthatwillbedisposedofbefore

reconstitutionoccurs.Itisalsodescribedasthefairvalueoftheentitybeforeconsideringliabilities.

Reorganizationvalueapproximatestheamountawillingbuyerwouldpayfortheassetsoftheentity

immediatelyaftertherestructuring.

16FreshstartreportingshouldbeusedbyacompanyemergingfromChapter11ifthefollowingtwo

conditionsaremet:(1)thereorganizationvalueoftheassetsoftheemergingentityimmediatelybeforethe

dateofconfirmationislessthanthetotalofallpostpetitionliabilitiesandallowedclaimsand(2)holdersof

existingvotingsharesimmediatelybeforeconfirmationreceivelessthan50percentofthevotingsharesof

theemergingentity.

17Entitiesnotqualifyingfbrfreshstartreportingreportliabilitiescompromisedbyaconfirmed

reorganizationplaninamannersimilartothatofanoteissuedinanoncashtransactionunderAPBOpinion

No.21.Forgivenessofdebtshouldbereportedasanextraordinaryitem.

17-4CorporateLiquidationsandReorganizations

SOLUTIONSTOEXERCISES

SolutionE17-1Solution17-2

1b1a

2d2d

3c3c

4d4d

5d

6c

7a

8d

9c

10d

11c

12d

13c

SolutionE17-3

NotereceivablefromPatriotsSupply$100,000

Amountsecuredbyinventoryitemsatexpectedrecoverablevalue(30,000)

UnsecuredportionofnotereceivablefromPatriotsSupply70z000

Expectedrecoveryonthedollarforunsecuredclaims,35

Expectedrecoveryonunsecuredportionofnote24,500

Add:Securedportion30，000

TotalexpectedrecoveryonnotefromPatriotsSupply$54,500

SolutionE17-4

1Onthebasisofthereorganizationvalue,BaxterHardwarequalifiesfor

freshstartreportingbecausetheestimatedreorganizationvalueof

$2,000,000islessthanthepostpetitionliabilitiesandallowedclaims.

Estimatedreorganizationvalue$2,000,000

Liabilities:

Postpetitionliabilities$1,200,000

Prepetitionliabilities1,500,000

Fullysecureddebt900,0003r600,000

Excessliabilitiesoverreorganizationvalue$1,600,000

2Oldstockholdersmustretainlessthana50%interestinthe''new

entity.

Reorganizationvalue$2,000,000

Less:Paymenttoprepetitionclaimants150,000

1,850,000

Reorganizedcapitalstructure:

Postpetitionliabilities$1,200,000

Notespayable300,000

Fullysecureddebt900,000

Newcommonstocktoprepetitionclaimants375,0002,775,000

Newcommonstocktooldstockholders$(925,000)

?2009PearsonEducation,Inc.publishingasPrenticeHall

SolutionE17-5

Cashavailablefordistribution$100z000

Mortgagepayable(securedportion)(50,000)

50,000

Priorityclaims(administrativeexpensesandsalaries)(10,000)

Availableforunsecured,nonpriorityclaims$40,000

Unsecured,nonpriorityclaims:

Balanceofmortgagepayable$30z000

Accountspayable50,000

Unsecured,nonpriorityclaims$80,000

$40,000availablecash/$80,000claims=$.50onthedollar

ScheduleofDistributionofAvailableCash

Mortgagepayable-securedportion$50z000

Unsecured,priorityclaims10,000

Mortgagepayable-unsecuredportion($30,000x$.50)15,000

Accountspayable($50,000x$.50)25,000

Totalcashdistributed$100,000

17-6CorporateLiquidationsandReorganizations

SOLUTIONSTOPROBLEMS

SolutionP17-1

1Entriesontrustee'sbooks:

March1,2008

Cash$4,000

Accountsreceivable一net8,000

Inventories36,000

Land20,000

Buildings-net100,000

Intangibleassets26,000

Accountspayable$50,000

Notepayable—unsecured40,000

Revenuereceivedinadvance1,000

Wagespayable3,000

Mortgagepayable80,000

Estateequity20,000

TorecordcustodyofScottCorporationinliquidation.

March2008

Cash$7,200

Estateequity800

Accountsreceivable-net$8,000

Torecordcollectionofreceivablesandrecognizeloss.

Cash$19,400

Estateequity16,600

Inventories$36,000

Torecordsaleofinventoriesataloss.

Cash$90,000

Estateequity30z000

Land$20,000

Buildings一net100,000

Torecordsaleoflandandbuildingsataloss.

Estateequity$26,000

Intangibleassets$26,000

Towriteoffintangibleassetsataloss.

Estateequity$8,200

Administrativeexpenses

payable—new$8z200

Toaccruetrusteeexpenses.

?2009PearsonEducation,Inc.publishingasPrenticeHall

SolutionP17-1(continued)

2ScottCorporationinTrusteeship

BalanceSheet

atMarch31z2008

Assets

Cash$120,包0

LiabilitiesAndDeficit

Accountspayable$50z000

Notepayable-unsecured40,000

Revenuereceivedinadvance1,000

Wagespayable3,000

Mortgagepayable80,000

Administrativeexpensespayable一new8,200

Totalliabilities182,200

Less:Estatedeficit(61,600)

Totalliabilitieslessdeficit$120,600

StatementofCashReceiptsandDisbursements

fromMarch1toMarch31,2008

Cashbalance,March1,2008$4,000

Add:Cashreceipts

Collectionsofreceivables$7Z200

Saleofinventories19z400

Saleoflandandbuildings90,000116,600

120,600

Less:Cashdisbursements(none)________0

Cashbalance,March31,2008$120,600

StatementofChangesinEstateEquity

fromMarch1toMarch31z2008

Estateequity,March1,2008$20,000

Less:

Lossonuncollectiblereceivables$800

Lossonsaleofinventories16,600

Lossonsaleoflandandbuildings30,000

Lossonwrite-offofintangibles26,000

Administrativeexpenses8,20081,600

Estatedeficit,March31,2008$61,600

17-8CorporateLiquidationsandReorganizations

SolutionP17-1(continued)

3Entriesontrustee'sbooks:

April2008

Mortgagepayable$80,000

Cash$80,000

Torecordpaymentofsecuredcreditorsfromproceedsfromsaleof

landandbuildings.

Administrativeexpensespayable-new$8,200

Revenuereceivedinadvance1,000

Wagespayable3Z000

Cash$12,200

Torecordpaymentofpriorityliabilities.

Accountspayable$15,800

Notepayable—unsecured12,60°

Cash$28,400

Torecordpaymentof$.32perdollartounsecuredcreditors

(availablecashof$28,400dividedbyunsecuredclaimsof$90,000).

Accountspayable$34,200

Notepayable——unsecured27,400

Estateequity$61,600

Towriteoffremainingliabilitiesandclosetrustee'srecords.

?2009PearsonEducation,Inc.publishingasPrenticeHall

SolutionP17-2

1Amountexpectedtobeavailableforunsecuredclaims:

Totalamountexpectedtobeavailableforall

claims$445,000

Less:Paymentstosecuredandpriorityclaims

Mortgagepayable$220,000

Notepayable75z000

Priorityclaims80,000375,000

Expectedtobeavailableforunsecured

nonpriorityclaims$70,000

2Expectedrecoveryperdollarofunsecuredclaims:

Expectedtobeavailable(from1)=$70,000

Unsecuredclaims($550,000-$375,000)=$175z000

Expectedrecoveryonthedollar:$70z000/$175z000=$,40

3Expectedrecoverybyclassofcreditors:

Fullysecured-mortgagepayable$220,000

Partiallysecured—notepayable$75,000+($25,000x$.40)85,000

Priorityunsecured-liabilitiestoprioritycreditors80,000

Unsecurednonprioritycreditors-accounts

payable($150,000x$.40)60,000

Total$445,000

17-10CorporateLiquidationsandReorganizations

SolutionP17-3

1Rankingofclaims:

Fullysecured:

Holdersoffirstmortgageandrelated

interest$228,500

Unsecuredpriority:

1.Administrativeexpenses$12,500

3.Wagespayableupto$4,000per47z000

employee

5.Customerclaimsformerchandisepaid1,500

forandnotdelivered(maximum

$1,800perindividual)

6.Stategovernmentforgross$3,000

receiptstaxes

Localgovernmentforproperty

taxes4,0007,000

Totalunsecuredpriorityclaims68,000

Unsecurednonpriority:

1.Merchandisecreditors$99,000

Localbankforprincipalofloan30,000

Presidentforsalarydueover$4,000lz000130,000

4.Interestonunsecuredbankloan4Z500

Totalunsecurednonpriorityclaims134,500

$431,000

Totalallclaims

Distributionofavailablecash:

1stMortgageholders(100%)$228,500

2ndAdministrativeexpenses(100%)12,500

3rdEmployees(upto$4,000each)(100%)47,000

4thCustomersformerchandisenotdelivered

(100%)1,500

5thStategovernment(100%)$3,000

Localgovernment(100%)4,0007Z000

[Remainingcash($374,500-$296,500)of$78,000/$130z000claimofnext

rank=$.60returnondollar]

6thMerchandisecreditors($99,000x.60)$59,400

Localbankforloanprincipal

($30,000x.60)18,000

Companypresident($1,000x.60)60078,000

Totaldistributed(equaltoavailablecash)$374,500

?2009PearsonEducation,Inc.publishingasPrenticeHall

SolutionP17-4

1HannaCorporation

StatementofAffairs

onJune30,2008

Assets

Realizable

Values-Realizable

LiabilityValue

OffsetsAvailablefor

BookforSecuredUnsecured

ValueCreditorsCreditors

Pledgedforpartially

securedcreditors

$55,000Equipment—net$28,000

Less:Mortgagenotepayable

andaccruedinterest(31,000)$0

Availableforpriority

andunsecuredcreditors

2,200Cash2,200

15,000Accountsreceivable一net13,500

20,000Inventories22,500

Totalavailableforpriorityandunsecured

creditors38,200

Less:Priorityliabilities12,000

Totalavailableforunsecuredcreditors26,200

Estimateddeficiency10,800

$92,2007,zOOP

LiabilitiesAndStockholdersfEquity

BookSecuredandUnsecuredNon-

Value