RESTRUCTURINGS: From the perspective of the debtor Debtor currently owes the following on a 10% note: face value............. $1,200,000 accrued interest..... 120.000 total owed............. $1,320,000 A. The creditor accepts equipment costing $1,000,000 with a book value of $800,000 as full settlement of the debt. The equipment has a fair market value of $1,100,000. B. The creditor "restructures" the note to include the following terms: a) Forgive the $120,000 past due interest. b) Forgive $200,000 of the principal. c) Extend the maturity date 5 years. C. The creditor "restructures" the note to include the following terms: a) Forgive the $120,000 past due interest. b) Forgive $200,000 of the principal. c) Extend the maturity date 5 years. d) Reduces the interest rate to 3%. RESTRUCTURINGS: From the perspective of the debtor Debtor currently owes the following on a 10% note: face value............. $1,200,000 accrued interest..... 120.000 total owed............. $1,320,000 A. The creditor accepts equipment costing $1,000,000 with a book value of $800,000 as full settlement of the debt. The equipment has a fair market value of $1,100,000. B. The creditor "restructures" the note to include the following terms: a) Forgive the $120,000 past due interest. b) Forgive $200,000 of the principal. c) Extend the maturity date 5 years. C. The creditor "restructures" the note to include the following terms: a) Forgive the $120,000 past due interest. b) Forgive $200,000 of the principal. c) Extend the maturity date 5 years. d) Reduces the interest rate to 3%