Slappey Communications is a technology firm in Birmingham, Alabama, specializing in telecommunications, computer, and network security. Its owner, Bill Slappey, invested nearly $770,000 in property, plant, and equipment for the business in 2014 (See “Small Firms Poised to Spend More on Plants, Equipment,” A. Loten and V. Monga, Wall Street Journal, September 3, 2014.) Slappey […]
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If Quiznos’ debts are discharged in bankruptcy, how do its creditors account for the effect of the bankruptcy?
June 2, 2014 
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The sandwich chain Quiznos has filed for Chapter 11 bankruptcy protection, which will allow it to continue operating while it works out a debt-restructuring plan with creditors. Senior lenders would receive equity in exchange for the debt. On the other hand, some junior creditors may not get paid the monies due to them from Quiznos. […]
Continue readingWhen does Ford Credit recognize bad debt expense associated with a new car loan?
December 17, 2013 0 Comments
Every individual has a credit score, which is an approximate measure of the risk of loan default to potential lenders. Credit scores range from about 300 – 850, with 850 being the best credit score possible. This credit score is a combination of several categories of history about the individual, including length of credit history, […]
Continue readingWhat are “loan reserves” at Bank of America?
November 21, 2013 0 Comments
According to a recent Wall Street Journal article (“Big Banks Are Adding Profits With ‘Reserve’ Cash, October 25, 2013” , Bank of America has indicated that its credit quality has increased since the financial crisis of 2008, due both to increased loan standards and rising house prices. Bank of America released $1.4 billion of loan reserves […]
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