In a Debt Settlement in Which the Debt Is Continued

question 54

Multiple Choice

In a debt settlement in which the debt is continued with modified terms, a gain should be recognized at the date of settlement whenever the

• A)carrying amount of the debt is less than the total future cash flows.
• B)carrying amount of the debt is greater than the present value of the future cash flows.
• C)present value of the debt is less than the present value of the future cash flows.
• D)present value of the debt is greater than the present value of the future cash flows.

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The average amount of money earned by employees in a particular job, industry, or region, calculated by summing all salaries and dividing by the number of employees.

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