Casey Corp. entered into a troubled debt restructuring agreement with First State Bank. First State agreed to accept land with a carrying amount of $$85,000$ and a fair value of $$120,000$ in exchange for a note with a carrying amount of $$185,000.$ Disregarding income taxes, what amount should Casey report as a gain in its income statement?

A$.$

$$0$

B$.$

$$65,000$

C$.$

$$100,000$

D$.$

$$35,000$