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.$ What amount should Casey

report as a gain from extinguishment of debt in its income statement?

A$.$ $$0$

B$.$ $$35,000$

C$.$ $$65,000$

D$.$ $$100,000$