On December 31, 2018, Sheffield Corp. is in financial difficulty and cannot pay a note due that day. It is a $3200000 note with $320000 accrued interest payable to Pharoah, Inc. Pharoah agrees to accept from Sheffield equipment that has a fair value of $1470000, an original cost of $2400000, and accumulated depreciation of $1170000. Pharoah also forgives the accrued Interest, extends the maturity date to December 31, 2021. reduces the face amount of the note to $1230000, and reduces the interest rate to 7%, with interest payable at the end of each year. Sheffield should recognize a gain or loss on the transfer of the equipment of $930000 loss $240000 gain $300000 gain