_____ in a Chapter 11 Bankruptcy Reorganization, the Discharge of Indebtedness

_____ In a Chapter 11 bankruptcy reorganization, the discharge of indebtedness is to be reported as

A) An adjustment to retained earnings in the predecessor's final statement of retained earnings.
B) An extraordinary item in the predecessor entity's final statement of operations.
C) An extraordinary item in the first statement of operation of the new reporting entity.
D) An adjustment to retained earnings in the new entity's initial statement of retained earnings.
E) None of the above.