Under Chapter 11 proceedings,what represents the fair value of the entity before considering liabilities and approximates the amount a willing buyer would pay for the entity's assets?
A)Reorganization value
B)Fire sale value
C)Fresh start value
D)Excess value

Question

Quizplus · Accepted Answer

Reorganization value represents the fair value of the entity before considering liabilities and approximates the amount a willing buyer would pay for the entity's assets. This value is used as a basis for determining the plan of reorganization in Chapter 11 bankruptcy proceedings. The other options, fire sale value, fresh start value, and excess value, do not accurately represent the fair value of the entity in Chapter 11 proceedings.

Under Chapter 11 Proceedings,what Represents the Fair Value of the Entity