Crane Company is indebted to Wildhorse under a $1015000, 12%, three-year note dated December 31, 2016. Because of Crane's financial difficulties developing in 2018, Crane owed accrued interest of $121800 on the note at December 31, 2018. Under a troubled debt restructuring, on December 31, 2018, Wildhorse agreed to settle the note and accrued interest for a tract of land having a fair value of $910000. Crane's acquisition cost of the land is $707000. Ignoring income taxes, on its 2018 income statement Crane should report as a result of the troubled debt restructuring

Gain on DisposalRestructuring Gain

$429800

$0

$308000

$0

$203000

$105000

$203000

$226800