Exercise 14-22 On December 31, 2017, American Bank enters into a debt restructuring agreement with Concord Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $4,400,000 note receivable by the following modifications: 1. Reducing the principal obligation from $4,400,000 to $3,520,000. 2. Extending the maturity date from December 31, 2017, to January 1, 2021. 3. Reducing the interest rate from 12% to 10%. Concord pays interest at the end of each year. On January 1, 2021, Concord Company pays $3,520,000 in cash to American Bank. Will the gain recorded by Concord be equal to the loss recorded by American Bank under the debt restructuring? Can Concord Company record a gain under the term modification mentioned above? Assuming that the interest rate Concord should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for Concord Company after the debt restructuring. (Round answers to 0 decimal places, e.g. 38,548.) CONCORD COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate Date Cash Paid Interest Expense Reduction of Carrying Amount Carrying Amount of Note 12/31/17 $ $ $ $ 12/31/18 12/31/19 12/31/20 Total $ $ $ Prepare the interest payment entry for Concord Company on December 31, 2019. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2019 What entry should Concord make on January 1, 2021? (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2021 Click if you would like to Show Work for this question: Open Show Work