Fr. 4Modification of Note under Different Circumstances. Halyor Corporation is having financial difficulty and therefore has asked Manhattan National Bank to restructure its $3 million note outstanding. The present note has 3 years remaining and pays a current rate of interest of 10%. The present market rate for a loan of this nature is 12%. The note was issued at its face V3] ue. lnstructio n5 Prepare below are three independent situations. Prepare the journal entry that Halyor would make for each of these restructurings. (a) Manhattan National Bank agrees to take an equity interest in Halyor by accepting ordinary shates 1ualued at $2.2D. in exchange for relinquishing its claim on this note. The ordinary shares have a par value of $1.00!],DUD. (In) Manhattan National Bank agrees to accept land in exchange for relinquishing its claim on this note. The land has a hook 1iralue of $1,950,42t and a fair 1iralue of $2.4,. {c} Manhattan National Bank agrees to modify the terms of the note1 indicating that Halyor does not have to pay interest on the note over the 3year period