At January $1,2024,$ Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $$35$ million, $12\%$ unsecured note. The note was signed January $1,2021,$ and was due December $31,2027.$ Annual interest was last paid on December $31,2022.$ Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement.

Required:

Prepare all journal entries by Rothschild Chair Company, Incorporated, to record the restructuring and any remaining transactions relating to the debt under each of the independent circumstances below:

First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $$31$ million but carried on Rothschild Chair Company$$s books at $$26\mathrm{.}5$ million.

First Lincoln Bank agreed to $($a$)$ forgive the interest accrued from last year, $($b$)$ reduce the remaining four interest payments to $$1$ million each, and $($c$)$ reduce the principal to $$28\mathrm{.}5$ million.

First Lincoln Bank agreed to defer all payments $($including accrued interest$)$ until the maturity date and accept $$47,648,000$ at that time in settlement of the debt. please help me do Question $3$ and explain why