The marson company took advantage of market conditions to refund debt. this was the fourth refunding operation carried out by marson within the last three years. how should the excess of the carrying amount of the old debt over the amount paid to extinguish it be reported

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Business

Toodles

13 December, 21:12

The marson company took advantage of market conditions to refund debt. this was the fourth refunding operation carried out by marson within the last three years. how should the excess of the carrying amount of the old debt over the amount paid to extinguish it be reported

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Moshe Erickson · Answer 1

They should report all expenses and all income. After doing that they should see how they eliminated the debt. Then look at the income to compare the ratio of debt to income. Then they can see what amount was truly paid and what amount was debt. They may struggle finding the complete answer since it is the fourth occurrence.