In a Troubled Debt Restructuring That Involves Only a Modification

Multiple Choice

In a troubled debt restructuring that involves only a modification of terms, if the amount to be repaid is greater than the current carrying value of the liability

A) no gain or loss would be recognized by the debtor
B) an ordinary gain would be recognized by the debtor
C) a prior period adjustment would be recognized by the debtor
D) an ordinary loss would be recognized by the debtor