Kifer Corp. owes P450,000 to First Trust. The debt is a 10-year, 12% note due December 31, 2016. Because Kifer Corp. is in financial trouble, First Trust agrees to axtend the maturity date December 31, 2018, reduce the principal to P370,000 and reduce the interest rate of 5%, payable annually on December 31. Kifer's market rate of interest is 8%. Prepare the journal entries on Kifer's books on December 31, 2016, 2017, and 2018. Present value of restructured cash flows:_______,Present value of P370,000 due in 2 years at 8% interest payable annually____,Present value of P11,000 interest payable annually for 2 years at 8%____,Fair value of note_____.Prepare Kifer Corp's entries,(a)2016;Note Payable (old)_____,Gain on extinguishedment of debt_____,note payable(new). (b) 2017 ,Interest Expense_____,Note payable____, Cash____,(c) 2018, Interest Expense____,Note Payable_____, Cash____