In each of the future payments of a document payable in installments (installment note) a. the amount of interest paid increases. b. the amount of principal paid is increasing. c. the amount of principal paid decreases. d. the amount paid for both interest and principal increases. 9. On 12/31/19 GMC had a note payable with a book value of $100,000. GMC has faced economic difficulties that have not allowed it to meet the payment of this debt. Assume that on 12/31/19, the Bank agreed to accept land with a market value of $85,000 as a $100,000 debt settlement. This property had a GMC book value of $75,000. Determine the net increase from this restructuring of debt in GMC's Net Income on 12/31/19. a. $25,000 c. $10,000 b. $5,000 d. $15,000 10. On December 31, 2019, GMC had a note payable with a book value of $100,000. GMC has faced economic difficulties that have not allowed it to meet the payment of this debt. Suppose that on the above date the bank agreed to change the terms of the loan as follows: the principal (maturity value) was reduced to $80,000, the maturity date was changed to December 31, 2021, and the contractual interest rate was changed. reduced from 15% to 10%. Determine the effect of this restructuring of debt on GMC's Net Income on 12/31/19. a. GMC is going to report a profit of $20,000. b. GMC will report a profit equal to 5% of the principal. c. GMC is going to report a profit of $4,000. d. When the terms of the contract are adjusted, the debtor does NOT report earnings.