NAME 4. Chapin Co. restructures a note payable of S1,100,000 plus accrued interest of $78,073 with its bank on December 31, 2010. The bank (1) forgives the accrued interest and $100,000 of the principal, (2) extends the maturity date from December 31, 2010 to December 31, 2015, and (3) reduces the interest rate from 10% to 8%. Interest payments are to be made annually at year end. Chapin Co's interest expense for fiscal year-end 2011 would be $ and the book value of the restructured debt on 12/31/11 would be