On December 31, 2012, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is a $1,980,000 note payable to Piper, Inc. As part of a restructure, Piper agrees to accept from Nolte equipment that has a fair value of $870,000, an original cost of $1,440,000, and accumulated depreciation of $690,000. Piper also extends the maturity date to December 31, 2015, reduces the face amount of the note to $750,000, and reduces the interest rate to 6% (of new face value), with interest payable at the end ofeach year. 7. Nolte should recognize a gain or loss on the transfer of the equipment of A) $0. B) $120,000 gain C) $180,000 gain. D) $570,000 loss E) None of the above 8. Nolte should recognize a gain on the partial settlement and restructure of the debt of (hint: The transfer of equipment reduces the BV of the debt) A) $0. B) $45,000. C) $166,000. D) $225,000. E) None of the above 9. Nolte should record interest expense for 2015 of A)$0. B) $45,000 C) $90,000. D) $135,000 E) None of the above Use the following to answer questions 10-11: Instrument Corporation has the following investments in par bonds which were held throughout 2014-2015: Fair Value 1231/14 12/31/15 $800,000 $760,000 720,000 Cost $600,000 Trading Available-for-sale 640,000 600,000