14. On December 31, 2021, Debtor Co. is in financial difficulty and cannot pay a note due that day. It is a $2,000,000 note with $180,000 accrued interest payable to Creditor Inc. Creditor agrees to accept from Debtor equipment that has a fair value of $900,000, and a book value of 900,000. Creditor Inc. also forgives the accrued interest (i.e., Creditor will not collect the $180,000 accrued interests), extends the maturity date to December 31, 2024, reduces the face amount of the note to $750,000, and reduces the interest rate to 6%, with interest payable at the end of each year. On December 31, 2021, Debtor Co. should recognize a gain on the restructure of the debt of a. $0. b. $165,000 c. $395,000. d. $900,000 e. none of above. a 15. On January 1, 2021, Debtor Co. sold 12% bonds with a face value of $2,000,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $82,154,435 to yield 10%. Using the effective-interest method of amortization, interest expense for 2021 is (round to the nearest dollar) a $200,000. b. $214,830 c. $215,444. d. $240,000 e. None above