Lyme Corporation Entered into a Troubled Debt Restructuring Agreement with Their

Lyme Corporation entered into a troubled debt restructuring agreement with their local bank. The bank agreed to accept land with a carrying amount of $360,000 and a fair value of $540,000 in exchange for a note with a carrying amount of $765,000. Ignoring income taxes, what amount should Lyme report as a gain on its income statement?

A) $0.
B) $180,000.
C) $225,000.
D) $405,000.