During Year 2, Colt Co. experienced financial difficulties and is likely to default on a $1,000,000, 15%, 3-year note dated January 1, Year 1, payable to Cain National Bank. On December 31, Year 2, the bank agreed to settle the note and unpaid Year 2 interest of $150,000 for $820,000 cash payable on January 31, Year 3. What is the amount of gain, before income taxes, from the debt restructuring? $0 $150,000 $180,000 $330,000