Which statement with respect to gains and losses on troubled debt restructuring is correct?

Question

Quizplus · Accepted Answer

Debtor losses on asset transfers and debtor gains on restructuring are reported as a component of net income, not as extraordinary items. This approach aligns with the general principle that gains and losses from ordinary business operations, including those from restructuring of debt, should be included in the calculation of net income. Extraordinary items classification has been eliminated from most accounting standards, including U.S. GAAP, making such gains and losses part of ordinary operations.

Which Statement with Respect to Gains and Losses on Troubled