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On December 31, 2020, American Bank enters into a debt restructuring agreement with Marigold Company, which is now experiencing financial trouble. The bank agrees to

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On December 31, 2020, American Bank enters into a debt restructuring agreement with Marigold Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,320,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,320,000 to $1,856,000. 2. Extending the maturity date from December 31, 2020, to January 1, 2024. 3. Reducing the interest rate from 12% to 10%. Marigold pays interest at the end of each year. On January 1, 2024, Marigold Company pays $1,856,000 in cash to Americ Bank. Will the gain recorded by Marigold be equal to the loss recorded by American Bank under the debt restructuring? No SHOW LIST OF ACCOUNTS LINK TO TEXT Can Marigold Company record a gain under the term modification mentioned above? No SHOW LIST OF ACCOUNTS Assuming that the interest rate Marigold should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for Marigold Company after the debt restructuring. (Round answers to o decimal places, e.g. 38,548.) MARIGOLD COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate Reduction Interest of Carrying Expense Amount Cash Paid Carrying Amount of Note 2320000 Date 12/31/20 12/31/21 12/31/22 12/31/23 Total 185600 185600 185600 185600 $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the interest payment entry for Marigold Company on December 31, 2022. (Round answers to 0 decimal places, e.g. 38,548. 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.) Debit Credit Date Account Titles and Explanation December 31, 2022 SHOW LIST OF ACCOUNTS LINK TO TEXT What entry should Marigold make on January 1, 2024? (Round answers to O decimal places, e.g. 38,548. 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.) Account Titles and Explanation Date December 31, 2024 Debit Credit Click if you would like to show Work for this question: Open Show Work

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