Ivanhoe Company owes $204000 plus $18100 of accrued interest to Shamrock State Bank. The debt is a 10-year, 10% note. During 2025, Ivanhoe's business deteriorated due to a faltering regional economy. On December 31, 2025, Shamrock State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $388000, accumulated depreciation of $213400, and a fair value of $181000. a. Prepare journal entries for Ivanhoe Company and Shamrock State Bank to record this debt settlement