ACME Incorporated has a $3.1 million dollar, 9% loan, annual interest payments each December 31, with RBC maturing on December 31, 2025. Due to decrease revenues caused by the pandemic, the company is experiencing solvency and cash flow issues that have negatively impacted the its ability to make its interest and principal payments. Assume that ACME's year end is December 31, and the company reports under IFRS.

On January 01, 2021, the bank agreed to extend the maturity date to 2035 and reduce the principle to $2,700,000 (The current market rate is 9%).

Required:

Round interim calculations to four decimals and final answers to the nearest dollar.

Conclude on the appropriate accounting treatment and show calculations to support your conclusion. (5 marks)