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 it to meet

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 it to meet 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 $100,000 debt settlement. This property had a GMC book value of $75,000. Determine the net increase from this restructuring of debt in GMC's Net Income on 12/31/19. a. $25,000 b. $5,000 c. $10,000 d. $15,000

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