Question: On 12/31/19 GMC had a note payable with a book value of $100,000. GMC has faced economic difficulties that have not allowed him to comply

On 12/31/19 GMC had a note payable with a book value of $100,000. GMC has faced economic difficulties that have not allowed him to comply with the payment of this debt. Assume that on 12/31/19, the Bank agreed to accept land with a market value of $85,000. as a debt settlement of $100,000. This property had a book value of $75,000 GMC. Determine the net increase from this restructuring of debt. debt) to GMC Net Income on 12/31/19. a. $25,000 c. $10,000 b. $5,000 d. $15,000

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