Cheyenne Company owes $167,000 plus $14,900 of accrued interest to Ayayai State Bank. The debt is a 10 year, 10% note. During 2022. Cheyenne's business deteriorated due to a faltering regional economy. On December 31, 2022. Ayayai State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $322,000, accumulated depreciation of $177,100 and a fair value of $149.000. How should Cheyenne report the following in its 2022 income statement? 1 Gain or loss on the Disposition of Machinery 2 Gain or Loss on Extinguishment of Debt