On December 31, 2020. American Bank enters into a debt restructuring agreement with Martinez Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,600,000 note receivable by the following modifications: 1. 2. Reducing the principal obligation from $2,600,000 to $1,720,000. Extending the maturity date from December 31, 2020, to January 1, 2024. Reducing the interest rate from 12% to 10% 3. Martinez pays interest at the end of each year. On January 1, 2024, Martinez Company pays $1,720,000 in cash to American Bank (a) Your answer is partially correct. Can Martinez Company record again under this term modification? Ves If yes, compute the gain for Martinez Company. If no, enter amount as 0. (b) Prepare the journal entries to record the gain on Martinez's books. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for later Attempts: 0 of 3 used Submit