Land and Buildings Having a Book Value of $150,000 and a Fair

question 34

Multiple Choice

Land and buildings having a book value of $150,000 and a fair value of $185,000 are transferred to a creditor in a troubled debt restructuring to fully settle a loan of $200,000 plus accrued interest of $3,000.What is the amount of the gain on restructuring?

• A)​$35,000
• B)​$53,000
• C)​$15,000
• D)​$18,000

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Definitions:

Support Price

A price level set by the government or a regulatory body to ensure that producers receive a minimum price for their products.

Price Elasticities

Measures how responsive the quantity demanded or supplied of a good is to a change in its price, indicating its sensitivity.

Surpluses

The excess of production or supply over demand in the market.

Free Market Equilibrium

A state in an unrestricted market where supply equals demand, and prices stabilize without external interventions.