*Exercise 14-21 Nash Company owes $182,000 plus 516,500 of accrued interest to Crane State Bank. The debt is a 10-year, 10% nate. During 2017, Nash's business deteriorated due to a faltering regional economy. On December 31, 2017, Crane State Bank agrees to accept an old machine and cancel the entire dcbt. The machine has a cost of $355,000, accumulated depreciation of $195,250, and a fair value at s165,000. for the amounts. Credit account titles are automatically indented when amount is Prepare journal entries for Nash Company and Crane State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Nash Company (Debtor); 1. December 31, 2017 Crane State Bank (Creditor) 2. December 31, 2017 How should Nash report the following in its 2017 income statement? 1. Gain or loss on the disposition of machine 2. Gain or loss on restructuring of debt Assume that, instead of transferring the machine, Nash decides to grant 14,000 shares of its common stock ($10 par) which has a fair value of $165,000 in null settlement of the loan obligation. If Crane State Bank treats Nash's stock as a trading investment, prepare the entries to record the transaction for both parties. (If no entry is required, select "No Entry" for the account ttles and enter for the amounts, Credit account Wities are automatically indented when amount is entered. Do not indhent manually.) Debit Credit No. Date Account Titles and Explanation Nash Company_(Debtor) 1. December 31, 2017 Crane State Bank (Creditor)! 2. December 31, 2017 Question Attempts: 0 of 3 used