Which Statement with Respect to Gains and Losses on Troubled

question 12

Multiple Choice

Which statement with respect to gains and losses on troubled debt restructuring is correct?

• A) Creditors losses on restructuring are extraordinary.
• B) Debtor's gains and losses on asset transfers and debtor's gains on restructuring are combined and treated as extraordinary.
• C) Debtor gains and creditor losses on restructuring are extraordinary, if material in amount.
• D) Debtor losses on asset transfers and debtor gains on restructuring are reported as a component of net income.