Question
How is times-interest-earned computed?
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Answer
EBIT divided by interest expense.
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Question
How is a TDR settled with transfer of assets or equity?
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Answer
Recognize restructuring gain as debt carrying amount minus fair value transferred.
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Question
What triggers a troubled debt restructuring?
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Answer
A creditor grants a concession because of the debtor's financial difficulty.
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Question
How are debt issuance costs reported on the balance sheet?
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Answer
As a direct deduction from debt, not a separate asset.
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