Nickelback LLC. currently has an issued debenture outstanding with TD Bank. The note has a principal of $3,000,000, was issued at face value, and interest is payable at 8%. The term of the debenture was 10 years and was issued on December 31, 2014. The current market rate for this debenture is 10%. Nickelback LLC. has been experiencing financial difficulties and has asked TD Bank to restructure the note. Both Nickelback LLC. and TD Bank prepare financial statements in accordance with IFRS. It is currently December 31, 2021.

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For each of the following independent situations related to the above scenario, prepare the journal entries that Nickelback LLC and TD Bank would make for the restructuring that is described. Use a finance calculator to calculate the amounts for the journal entries and round amounts to the nearest dollar.

a) TD Bank has agreed to accept common shares with a market value of $2.4 million in exchange for relinquishing this note. Assume that the bank had previously recognized a loss on impairment.