Use the Following Information for Questions *103 Through *105

question 129

Multiple Choice

Use the following information for questions *103 through *105:
On December 31, 2012, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is a $1,800,000 note with $180,000 accrued interest payable to Piper, Inc. Piper agrees to accept from Nolte equipment that has a fair value of $870,000, an original cost of $1,440,000, and accumulated depreciation of $690,000. Piper also forgives the accrued interest, extends the maturity date to December 31, 2015, reduces the face amount of the note to $750,000, and reduces the interest rate to 6%, with interest payable at the end of each year.
-Nolte should recognize a gain on the partial settlement and restructure of the debt of

• A) $0.
• B) $45,000.
• C) $165,000.
• D) $225,000.

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Definitions:

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Groups of genes that control the body plan of an embryo along the head-tail axis by dictating the positions of various anatomical structures.

Anterior-Posterior Axis

A directional axis in biology, referring to the front (anterior) and back (posterior) orientation of an organism or its parts.

Ray-Finned Fishes

A class (Actinopterygii) of modern bony fishes; contains about 95% of living fish species.

Tetrapods

A vertebrate group that includes all species with four limbs, such as amphibians, reptiles, birds, and mammals, including those that have lost limbs through evolution.