Equipment with a Fair Value of $65,000 and a Cost

Equipment with a fair value of $65,000 and a cost basis of $60,000 is transferred to a creditor in partial settlement of a debt of $150,000 plus accrued interest of $7,500.The balance of the debt will be satisfied by 3 equal payments of $30,000 over the next three years.Which of the following journal entries best records the restructure?
a.
$\begin{array}{lrr}\text { Loan Payable } & 150,000 & \\\text { Interest Payable } & 7,500 & \\\text { Equipment } & & 60,000 \\\text { Restructured Debt } & & 90,000 \\\text { Gain on Restructure } && 7,500\end{array}$

b.
$\begin{array}{lrr}\text { Loan Payable } & 150,000 & \\\text { Loss on Restructure } & 5,000 & \\\text { Equipment } & & 60,000 \\\text { Gain on Transfer of Equipment } && 5,000 \\\text { Restructured Debt } && 90,000\end{array}$

c.
$\begin{array}{lrr}\text { Loan Payable } & 150,000 & \\\text { Interest Payable } & 7,500 & \\\quad \text { Equipment } & & 60,000 \\\text { Gain on Transfer of Equipment } && 5,000 \\\text { Restructured Debt } && 90,000 \\\text { Gain on Restructure } && 2.500\end{array}$

d.
$\begin{array}{lrr}\text { Loan Payable } & 150,000 & \\\text { Interest Payable } & 7,500 & \\\quad \text { Equipment } & & 65,000\end{array}$