D is corrent. The gain on restructuring the debt would be the difference between the carrying amount of the note received and the FMV of the land given. The amount that Ace should report as gain in its income statement is
| $150,000 | CV of note |
| – 100,000 | FMV of land |
| $ 50,000 | Gain on restructuring the debt |
A is incorrect. The gain on restructuring the debt would be the difference between the carrying amount of the note received and the FMV of the land given. The amount that Ace should report as gain in its income statement is
| $150,000 | CV of note |
| – 100,000 | FMV of land |
| $ 50,000 | Gain on restructuring the debt |
B is incorrect. The gain on restructuring the debt would be the difference between the carrying amount of the note received and the FMV of the land given. The amount that Ace should report as gain in its income statement is
| $150,000 | CV of note |
| – 100,000 | FMV of land |
| $ 50,000 | Gain on restructuring the debt |
C is incorrect. The gain on restructuring the debt would be the difference between the carrying amount of the note received and the FMV of the land given. The amount that Ace should report as gain in its income statement is
| $150,000 | CV of note |
| – 100,000 | FMV of land |
| $ 50,000 | Gain on restructuring the debt |
