In a troubled debt restructuring that involves only a modification of terms, if the amount to be repaid is greater than the current carrying value of the liability

A) no gain or loss would be recognized by the debtor
B) an ordinary gain would be recognized by the debtor
C) a prior period adjustment would be recognized by the debtor
D) an ordinary loss would be recognized by the debtor

Modification Of Terms

Changes made to the terms of a contract, including loans and agreements, to adjust the obligations of the parties involved.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as original cost minus accumulated depreciation or amortization.

Ordinary Gain

A profit resulting from the sale or exchange of assets used in a business, not classified as capital gains.