In a Troubled Debt Restructuring in Which the Debt Is

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, the creditor should

A) calculate a new effective-interest rate.
B) not recognize a loss.
C) calculate its loss using the historical effective rate of the loan.
D) calculate its loss using the current effective rate of the loan.