Bb Homework $14-9$

$9/10/2024$

Eddy Co$.$ is indebted to Cole under a $$1,000,000,12\%,$ three$-$year note dated December $31,2016.$ Because of Eddys financial difiicullies developing in $2018,$ Eddy owed accrued interest of $$120,000$ on the note at December $31,2018.$ Under a troubled debt restructuring, on December $31,2018,$ Cole agreed to setile the note and accrued interest for a tract of land having a fair value of $$900,000.$ Eddy's acquisition cost of the land is $$725,000.$ Journalize this transaction for Eddy Co$.$ and Cole. Show all calculations.