Brye Co. is indebted to Dole under a $400,000, 12%, three-year note dated December 31, 2005. Because of Brye's financial difficulties developing in 2007, Brye owed accrued interest of $48,000 on the note at December 31, 2007. Under a troubled debt restructuring, on December 31, 2007, Dole agreed to settle the note and accrued interest for a tract of land having a fair value of $360,000. Brye's acquisition cost of the land is $290,000. Ignoring income taxes, on its 2007 income statement Brye should report as a result of the troubled debt restructuring Gain on Disposal Restructuring Gain a. $158,000 $0 b. $110,000 $0 c. $70,000 $40,000 d. $70,000 $88,000