calculate the loss on restructuring of debt.

On December 31,2025, American Bank enters into a debt restructuring agreement with Whispering Company, which is now experiencing financial trouble. The bank agrees to restructure a 12% issued at par, $2,000,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,000,000 to $1,300,000. 2. Extending the maturity date from December 31,2025 , to January 1,2029. 3. Reducing the interest rate from 12% to 10%. Whispering pays interest at the end of each year. On January 1,2029, Whispering Complony pays $1,300,000 in cash to American Bank. Answer the following questions related to American Bank (creditor). Click here to view fictor tabies: Compute the loss American Bank will suffer under this new term modification. (Round present value foctor to 5 decimal places, eg. 0.23465 and final answer to 0 decimal ploces, eg. 38,548 .) Loss on restructuring of debt $ Prepare the journa 2 entry to record the loss on American's books. (Round present value factor to 5 decimal places, es. 0.23465 and final answers to 0 decimal places, eg. 38,548, If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account tittes are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry) On December 31, 2025, American Bank enters into a debt restructuring agreement with Whispering Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,000,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,000,000 to $1,300,000. 2. Extending the maturity date from December 31,2025 , to January 1,2029. 3. Reducing the interest rate from 12% to 10%. Whispering pays interest at the end of each year. On January 1,2029 . Whispering Company pays $1,300,000 in cash to American Bank. Answer the following questions related to American Bank (creditor). Click here to vew factor tabies