In Chapter 11 bankruptcy reorganizations, the amount of debt forgiven may be reported in the income statement or as a credit directly to stockholders' equity.

Name: In Chapter 11 bankruptcy reorganizations, the amount of debt forgiven may be reported in the income statement or as a credit directly to stockholders' equity.
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In Chapter 11 bankruptcy reorganizations, the amount of debt forgiven is typically reported as a gain in the income statement, not as a credit directly to stockholders' equity.

In Chapter 11 Bankruptcy Reorganizations, the Amount of Debt Forgiven