Exercise 14-24 On December 31, 2017, American Bank enters into a debt restructuring agreement with Riverbed Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,800,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,800,000 to $1,860,000. 2 Extending the maturity date from December 31, 2017, to January 1, 2021. 3. Reducing the interest rate from 12% to 10%. Riverbed pays interest at the end of each year. On January 1, 2021, Riverbed Company pays $1,860,000 in cash to American Bank. Can Riverbed Company record a gain under this term modification? If yes, compute the gain for Riverbed Company. If no, enter amount as 0 The gain for Riverbed Company Prepare the journal entries to record the gain on Riverbed's books. (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.) Account Titles and Explanation Debit Credit What interest rate should Riverbed use to compute its interest expense in future periods? (Round answer to 0 decimal places, e.g. 18%.) The gain