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📊 Accounting
Hard
A company writes down $100 of its own outstanding debt (e.g., it bought it back at a discount). Walk through the three statements (40% tax rate).
Answer
IS: a $100 gain on extinguishment of debt — EBT +$100, taxes +$40, NI +$60. CFS: start at NI +$60.
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three statementsown debtwrite-down