Question: debt. Before restructuring, CMA Co . reported debt of $ 2 2 M , in addition to interest payable of $ 2 M . The

debt. Before restructuring, CMA Co. reported debt of $22M, in addition to interest payable of
$2M. The lender, Dad Corporation, agreed to settle the debt in exchange for inventory with a
book value of $20M and a fair value of $25M.
What is the gain on restructuring for CMA?
$0M
$1M
$4M
$8M
debt. Before restructuring, CMA Co. reported debt of $22M, in addition

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