Ford Corporation Entered into a Troubled Debt Restructuring Agreement with Their

question 25

Multiple Choice

Ford Corporation entered into a troubled debt restructuring agreement with their local bank. The bank agreed to accept land with a carrying value of $200,000 and a fair value of $300,000 in exchange for a note with a carrying amount of $425,000. Ignoring income taxes, what amount should Ford report as a gain on its income statement?

• A) $0.
• B) $100,000.
• C) $125,000.
• D) $225,000.

---

Definitions:

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is then used as a benchmark to measure how the other tested subjects do.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a certain level of confidence.

Mean Weekly Salary

The average amount of money earned in a week by a group of employees or population, calculated by summing all salaries and dividing by the number of wage earners.

Female Employees

Refers to workers or staff members who identify as female within a workplace.