Blossom Company owes $221,000 plus $20,100 of accrued interest to Blue State Bank. The debt is a 10-year, 10% note. During 2020, Blossom's business deteriorated due to a faltering regional economy. On December 31, 2020, Blue State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $402.000, accumulated depreciation of $221,100, and a fair value of $201,000 Prepare journal entries for Blossom Company and Blue State Bank to record this debt settlement. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) How should Blossom report the following in its 2020 income statement? 1. Gain or loss on the disposition of machine 2. Gain or loss on restructuring of debt