In a debt settlement in which the debt is continued with modified terms, a gain should be recognized at the date of settlement whenever the
A) carrying amount of the debt is less than the total future cash flows.
B) carrying amount of the debt is greater than the present value of the future cash flows.
C) present value of the debt is less than the present value of the future cash flows.
D) present value of the debt is greater than the present value of the future cash flows.
Correct Answer:
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