Exercise 14-24 On December 31, 2012, the American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 13%, issued at par, $3,261,000 note receivable by the following modifications: 1. Reducing the principal obligation from $3,261,000 to $1,904,000. 2. Extending the maturity date from December 31, 2012, to January 1, 2016. 3. Reducing the interest rate from 13% to 10%. Barkley pays interest at the end of each year. On January 1, 2016, Barkley Company pays $1,904,000 in cash to American Bank