Question: In a troubled debt restructuring with modified terms, if total cash payments are less than the book value of the debt, Multiple choice question. the

In a troubled debt restructuring with modified terms, if total cash payments are less than the book value of the debt,
Multiple choice question.
the reduction in the carrying value of the debt is recorded in other comprehensive income.
subsequent cash payments are allocated between principal and interest.
the difference is recorded as a gain in net income.

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