On Dec. 31, 20x1, LEX Co.'s loan was modified as follows: -The principal was reduced from 4,000,000 to 2,000,000 pesos -The lender forgave the accrued interest of 300,000 -The maturity date was extended from Dec. 31, 20x2 to Dec. 31, 204 -The nominal interest rate was reduced from 12% to 10% Interest is due annually at each year-end. The original effective interest rate is 12%. The current interest rate on Dec. 31,201 is 11% a. How much is the gain or loss on the extinguishment b. Prepare 1 compound journal entry for this transaction. c. How much is the impairment loss recognized in the books of the lender