Under Chapter 12 of the Bankruptcy Code

question 25

Multiple Choice

Under Chapter 12 of the Bankruptcy Code:

• A)only farms with an aggregate debt exceeding $5 million are covered.
• B)the debtor must cease to operate the farm.
• C)no trustee is appointed.
• D)the debtor is usually permitted to remain in possession to operate the farm.

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Definitions:

Machine-Hours

A measure of manufacturing time that indicates the amount of time a machine is in use.

Machine-Hours

A measure of the amount of time that machinery is in operation, typically used as a basis for allocating manufacturing overhead costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a predetermined formula, often involving estimated costs and activity levels.

Machine-Hours

A measure of production volume or activity based on the number of hours machines are operating.