Use the Following Information for Questions 44-46

question 53

Multiple Choice

Use the following information for questions 44-46.
On December 31, 2020, Diaz Corp. is in financial difficulty and cannot pay a $ 900,000 note with $ 90,000 accrued interest payable to Cameron Ltd., which is now due. Cameron agrees to accept from Diaz equipment that has a fair value of $ 435,000, an original cost of $ 720,000, and accumulated depreciation of $ 345,000. Cameron also forgives the accrued interest, extends the maturity date to December 31, 2022, reduces the face amount of the note to $ 375,000, and reduces the market interest rate of 6%, with interest payable at the end of each year.
-Diaz should recognize a gain on the partial settlement and restructure of the debt of

• A) $ 0.
• B) $ 22,500.
• C) $ 112,500.
• D) $ 180,000.

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Definitions:

Mucous Membrane

A layer of epithelial tissue that produces mucus, lining various cavities in the body.

-dynia

A suffix used in medical terminology to denote pain in a specific part of the body.

Intra-

A prefix meaning "within" or "inside," used to denote something occurring internally.

Colp/o

A medical prefix related to the vagina, used to form terms referring to conditions, procedures, or instruments associated with the vagina.