Condor Company modifies a note payable with New York Bank as part of a troubled debt restructuring. Both the present value of cash flows and the undiscounted cash flows under the terms of the new note are less than the book value of the note payable. Multiple choice question. Condor Company will recognize a gain. New York Bank will recognize a gain. New York Bank will not recognize a gain or a loss. Condor Company will not recognize a gain or loss