Exhibit 14-12 Shaw Owes Lawrence Co

Exhibit 14-12 Shaw owes Lawrence Co.$15, 000 on a note payable, plus $3, 000 of unpaid interest.Lawrence agrees to accept equipment in full settlement of the debt.The equipment is recorded on Shaw's books at $12, 000, and it is currently worth $14, 200.
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Refer to Exhibit 14-12.What total amount of ordinary gains should be recorded by Shaw on this troubled debt restructuring?

A) $ 0
B) $2, 200
C) $3, 800
D) $6, 000