FASB codification research; legal fees in a troubled debt restructuring
Response to the following problem:
In negotiating and effecting a troubled debt restructuring, the creditor usually incurs various legal costs. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles.
Required:
1. Obtain the relevant authoritative literature on the accounting treatment of legal fees incurred by a creditor to effect a troubled debt restructuring using the FASB Accounting Standards Codification at the FASB website (asc.fasb.org ).
2. What is the specific citation that describes the guidelines for reporting legal costs?
3. What is the appropriate accounting treatment?