Pineapple Owes Dole a $ 600,000, 12%, Three-Year Note Dated

Short Answer

Pineapple owes Dole a $ 600,000, 12%, three-year note dated December 31, 2018. Pineapple has been experiencing financial difficulties, and still owes accrued interest of $ 72,000 on this note at December 31, 2020. Under a troubled debt restructuring, on December 31, 2020, Dole agrees to settle the note plus the accrued interest for land that Pineapple owns, which has a fair value of $ 540,000. Pineapple's original cost of the land is $ 435,000. Ignoring income taxes, on its 2020 income statement, what should Pineapple report as a result of the troubled debt restructuring?