A Firm Retired a Long-Term Note by In-Substance Defeasance

Multiple Choice

A firm retired a long-term note by in-substance defeasance.This means that:

A) the creditors have been paid.
B) the debtor has been released of its legal responsibility for all remaining debt payments.
C) the debt is shown as an offset against the assets used to retire the debt, in the debtor's balance sheet.
D) there is only a remote chance that the debtor will be required to make further payments on the liability.
E) the debtor will continue to recognize interest expense on the debt but will make no more payments.