Bar Company, which is in financial difficulty and in the process of a voluntary reorganization, has agreed to transfer to a creditor a copyright it owns in full settlement of a $200,000 note payable and $20,000 in accrued interest. The copyright, which originally cost $122,000, has an accumulated amortization balance of $67,100 and a current fair value of $115,900.

Prepare the journal entries on Bar Companys books to record the transfer of the copyright.