Please show work and round to two decimal places. Thank you! Voluntary settlements For...
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Please show work and round to two decimal places. Thank you!
Voluntary settlements For a firm with outstanding debt of $127,000, classify each of the following voluntary settlements as an extension, a composition, or a combination of the two. a. Paying a group of creditors in full in four periodic installments and paying the remaining creditors in full immediately. b. Paying a group of creditors 87 cents on the dollar immediately and paying the remaining creditors 80 cents on the dollar in two periodic installments. c. Paying all creditors 14 cents on the dollar. d. Paying all creditors in full in 90 days. a. Paying a group of creditors in full in four periodic installments and paying the remaining creditors in full immediately. (Select the best answer below.) The settlement is: O A. an extension. O B. a composition. O c. a combination
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