Crane Company is indebted to Blossom under a $950000, 11%, three-year note dated December 31, 2019. Because of Crane's financial difficulties developing in 2021, Crane owed accrued interest of $104500 on the note at December 31, 2021. Under a troubled debt restructuring, on December 31, 2021, Blossom agreed to settle the note and accrued interest for a tract of land having a fair value of $850000. Crane's acquisition cost of the land is $700000. Ignoring income taxes, on its 2021 income statement Crane should report as a result of the troubled debt restructuring

Gain on Disposal

Restructuring Gain

A)

$354500

$0

B

$250000

$0

c

$150000

$100000

d

$150000

$204500