Larkspur Company owes $170,000 plus $15,200 of accrued interest to Cullumber State Bank. The debt is a 10-year, 10% note. During 2020, Larkspur's business deteriorated due to a faltering regional economy. On December 31, 2020, Cullumber State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $330,000, accumulated depreciation of $181,500, and a fair value of $152,000. (a) Prepare journal entries for Larkspur Company and Cullumber State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) No. Date Debit Credit Account Titles and Explanation Larkspur Company (Debtor): 1 December 31, 2020 Question 8 of 22 - /20 E No. Date Account Titles and Explanation Debit Credit Larkspur Company (Debtor); 1. December 31, 2020 1 Cullumber State Bank (Creditor): 2 December 31.2020