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