Extract to table

The importance of obtaining this valuation cannot be overstated: the amount of COD income directly determines (i) the amount of income that Stonefield must exclude from gross income under Section 108(a)(1)(B) (if available), and (ii) the corresponding amount of tax attribute reduction under Section 108(b)

The Company's liabilities immediately before the Exchange include the following: The total liabilities must include all obligations of the Company, whether or not reflected on the balance sheet prepared in accordance with generally accepted accounting principles

The FMV of Stonefield's assets must be determined on an asset-by-asset basis (or, equivalently, on a going-concern basis if the assets are more valuable in use than in liquidation)

Under this provision: "If a debtor corporation transfers stock to a creditor in satisfaction of its recourse or nonrecourse indebtedness, such corporation shall be treated as having satisfied the indebtedness with an amount of money equal to the fair market value of the stock

" This rule applies to all transfers of corporate stock in satisfaction of indebtedness, whether the stock is common stock, preferred stock, or any other class of equity security, subject to the qualification that the instrument must be properly characterized as "stock" for federal income tax purposes (as opposed to debt masquerading as equity)

Debt instruments typically have a fixed maturity date at which the principal must be repaid