Voluntary settlements Classily each of the following voluntary settlements as an

Question

Voluntary settlements Classily each of the following voluntary settlements as an extension, a composition, or a combination of the two. a. Paying all creditors 35 cents on the dollar in exchange for complete discharge of the debt b. Paying all creditors in full in three periodic installments. c. Paying a group of creditors with clairms of $19,000 in full over 2 years and immediately paying the remaining creditors 76 cents on the dollar a. Paying all creditors 35 cents on the dolilar in exchange for complete discharge of the debt. (Select the best answer below.) The settlement is O A a composition. OB. acombination O C. an extension b. Paying all creditors in full in three periodic installments. (Select the best answer below.) The settlement is O A a composition OB. acombination O C an extension. c. Paying a group of creditors with claims of $19,000 in full over 2 years and immediately paying the remaining creditors 76 cents on the dollar. (Select the best answ The settlement is

Explanation / Answer

A, Option A is correct as in composition settlement debt does not pay the full amount.

B. Option C is correct as here due date is extended for 3 periods

C. Optin B as it combination of both extension and composition

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