On December 31, 2009, Short Co. is in financial difficulty and cannot pay a note due that day. It is a $500,000 note with $50,000 accrued interest payable to Bryan, Inc. Bryan agrees to forgive the accrued interest, extend the maturity date to December 31, 2011, and reduce the interest rate to 4%. The present value of the restructured cash flows is $428,000