$2.$

A company has $6$ percent debt with a carrying value of $$400,000,$ and repayment terms of $$218,174$ per year, due at the end of each of the next two years. Due to a sharp decline in revenues, the company cannot make the next payment and negotiates a reduction in the payment to $$185,000$ per year for the next two years. The change in payment terms qualifies as a troubled debt restructuring. What is the gain on restructuring, and the interest expense recorded by the company for the first $$185,000$ payment?

Select one:

a$.$ $$0$ gain, $$24,000$ interest expense

b$.$ $$0$ gain, $$0$ interest expense

c$.$ $$30,000$ gain, $$33,000$ interest expense

d$.$ $$30,000$ gain, $$0$ interest expense