On December 31, 2017, American Bank enters into a debt restructuring agreement with Larkspur Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $ 4,300,000 note receivable by the following modifications:

1.		Reducing the principal obligation from $ 4,300,000 to $ 2,920,000.
2.		Extending the maturity date from December 31, 2017, to January 1, 2021.
3.		Reducing the interest rate from 12% to 10%. Larkspur pays interest at the end of each year. On January 1, 2021, Larkspur Company pays $ 2,920,000 in cash to American Bank. -Prepare the journal entries to record the gain on Larkspurs books. -What interest rate should Larkspur use to compute its interest expense in future periods? -Prepare the interest payment schedule of the note for Larkspur Company after the debt restructuring.for 12/31/17, 12/31/18, 12/31/19. 12/31/20