Troubled Debt Restructuring Examples 1. Company A is experiencing financial difficulty and is unlikely to be able to make the principal payment on an existing date. The $3,000,000 5-year, 6% note and current year's interest is due. The creditor, due to Company A's situation, has agreed to accept, as payment in full, a parcel of land Company A owns. The land cost Company A $1,800,000 and was appraised at $2,900,000. How should Company A account for this settlement of its debt