Current Attempt in Progress On December 31, 2025, American Bank enters into a debt restructuring agreement with Flounder Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,720,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,720,000 to $2,176,000. 2. Extending the maturity date from December 31, 2025, to January 1, 2029. 3. Reducing the interest rate from 12% to 10%. Flounder pays interest at the end of each year. On January 1, 2029, Flounder Company pays $2.176,000 in cash to American Bank. Will the gain recorded by Flounder be equal to the loss recorded by American Bank under the debt restructuring? eTextbook and Media List of Accounts Can Flounder Company record a gain under the term modification mentioned above? eTextbook and Media List of Accounts Assistance Used Assuming that the interest rate Flounder should use to compute interest expense in future periods is 1.4276 %, prepare the interest payment schedule of the note for Flounder Company after the debt restructuring. (Round answers to O decimal places, e.g. 38,548.) Cash Date Paid FLOUNDER COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate Interest Expense Reduction Carrying of Carrying Value of Amount Note Assuming that the interest rate Flounder should use to compute interest expense in future periods is 1.4276 %, prepare the interest payment schedule of the note for Flounder Company after the debt restructuring. (Round answers to O decimal places, e.g. 38,548.) FLOUNDER COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate Cash Date Paid 12/31/25 $ C 12/31/26 12/31/27 12/31/28 otal $ Interest Expense Reduction of Carrying Amount Carrying Value of Note $ Prepare the interest payment entry for Flounder Company on December 31, 2027. (Round answers to O decimal places, e.g. 38,548. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date December 31, 2027 Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit What entry should Flounder make on January 1, 2029? (Round answers to 0 decimal places, e.g. 38,548. 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 the amount is entered. Do not indent manually. List debit entry before credit entry.) Date Account Titles and Explanation December 31, 2029 eTextbook and Media List of Accounts Debit Credit