On December 31, 2014, the American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12 percentage, issued at par, dollar 3,000, 000 note receivable by the following modifications: Reducing the principal obligation from dollar 3,000, 000 to dollar 2,400, 000. Extending the maturity date from December 31, 2014, to January 1, 2018. Reducing the interest rate from 12 percentage to 10 percentage. Barkley pays interest at the end of each year. On January 1, 2018, Barkley Company pays dollar 2,400, 000 in cash to American Bank. Answer the following questions related to American Bank (creditor). What interest rate should American Bank use to calculate the loss on the debt restructuring? Interest rate percentage Compute the loss that American Bank will suffer from the debt restructuring. (Round answer to 0 decimal places, e.g. 38,548.) Loss on restructuring of debt dollar Prepare the journal entry to record the loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)