Emmet Company has entered into an agreement with its creditor, Roberts Corporation. Roberts has agreed to change the terms of the debt that Emmet is obligated to where Roberts forgives the accrued interest and lowers the interest rate. Currently the debt is $150,000, 10 percent, 5-year notes, with three years remaining before maturity. Accrued interest of $30,000 is owed. Roberts has agreed to extend the note three years and reduce the interest rate to 4 percent with payments made annually, and to waive the accrued interest in its entirety.