In a Troubled Debt Restructuring in Which the Debt Is

question 23

Multiple Choice

In a troubled debt restructuring in which the debt is restructured by a transfer of assets with a fair value less than the carrying amount of the debt, the debtor would recognize

• A) no gain or loss on the restructuring.
• B) a gain on the restructuring.
• C) a loss on the restructuring.
• D) None of these answers are correct.

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