Carla Company owes $176,000 plus $15,600 of accrued interest to Sarasota State Bank. The debt is a 10-year, 10% note. During 2020, Carla's business deteriorated due to a faltering regional economy. On December 31, 2020, Sarasota State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $333,000, accumulated depreciation of $183,150, and a fair value of $156,000. (a) Prepare journal entries for Carla Company and Sarasota State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation December 1. 31, 2020 Carla Company (Debtor): Debit Credit