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Corona Industries purchased a stamping machine on January 2 , 2 0 X 1 , for $ 1 0 0 , 0 0 0 .
Corona Industries purchased a stamping machine on January X for $ It made
an initial payment of $ and financed the balance over years at State Bank. The loan
terms were for annual payments of $ plus interest, payable on December each
year. The year X proves to be a difficult year and on December X Corona
negotiates a debt restructuring with State Bank. The settlement calls for cash payment of
accrued interest plus $ on December and the transfer of acres of land held by
Corona that cost $ The land has a current fair value of $
What is the amount of the restructuring gain or loss to Corona?
A $ loss
B $ gain
C $ loss
D $ gain
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