If a Debt Refunding Is Viewed as a Modification or Renegotiation

question 58

Multiple Choice

If a debt refunding is viewed as a modification or renegotiation, then

• A)a new effective-interest rate is calculated.
• B)a gain or loss is recorded.
• C)there is no change in the accounting for the debt.
• D)the old debt is derecognized.

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