In a Troubled Debt Restructuring in Which the Debt Is

Multiple Choice

In a troubled debt restructuring in which the debt is continued with modified terms and the carrying amount of the debt is less than the total future cash flows,

A) A gain should be recognized by the debtor
B) No interest expense or revenue should be recognized in the future
C) A loss should be recognized by the debtor
D) A new effective-interest rate must be computed