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9. In a troubled debt restructuring Ames Corporation settled the debt by a transfer of assets with a fair market value less than the carrying

9. In a troubled debt restructuring Ames Corporation settled the debt by a transfer of assets with a fair market value less than the carrying value of the debt. Ames Corporation would recognize
a. a gain on the settlement. b. gain on the settlement only if cash is also paid.
c. a loss on the settlement. d. a loss on the settlement only if cash is also received.

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