The way a debtor accounts for the restructuring depends on the extent of the reduction in cash

Question:

The way a debtor accounts for the restructuring depends on the extent of the reduction in cash payments called for by the restructured arrangement. Describe, in general, the accounting procedure for the two basic cases: when, under the new agreement, total cash payments

(a) Are less than the carrying amount of the debt or

(b) Still exceed the carrying amount of the debt.