Marin Inc. owes Sweet Acacia Bank $241,000 plus $15,100 of accrued interest. The debt is a 10-year, 10% note. During 2020, Marin's business declined due to a slowing regional economy. On December 31, 2020, the bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $472,000, accumulated depreciation of $268,000, and a fair value of $221,000. The bank plans to dispose of the machine at a cost of $7,200. Both Marin and Sweet Acacia Bank prepare financial statements in accordance with IFRS 9.