During 2016, Company X repurchased a total of $181.9 million principal amount of existing senior subordinated notes in open market transactions, consisting of the following :

- $9.8 million principal amount of our 2021 (maturity) Notes

- $66.1 million principal amount of our 2022 (maturity) Notes

- and $106.0 million principal amount of our 2023 (maturity) Notes for

Total purchase price for the notes is $76.7 million, excluding accrued interest. The repurchases were made at prices ranging from approximately 25% to 75% of the principal amount of the individual senior subordinated notes.

In connection with these series of transactions, during 2016 Company X recognized a $103.1 million gain on debt extinguishment, net of unamortized debt issuance costs written off.

Company X currently estimate combined annual cash interest savings of approximately $7 million related to these repurchases and the exchange transactions.

a. Describe the transaction in accounting terms.

b. Reconstruct the journal entry for the restructuring transaction.

c. Reconstruct the journal entry for payment of interest during 2016, including and the capitalized interest.