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Nash Company owes $190,000 plus $16,700 of accrued interest to Crane State Bank. The debt is a 10 year, 10% note. During 2025, Nash's business deteriorated due to a faltering regional economy. On December 31, 2025, Crane State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $325,000, accumulated depreciation of $178,750, and a fair value of $167,000. (a) 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Crane State Bank (Creditor); 2. December