On December 31, 2020, American Bank enters into a debt restructuring agreement with Grouper Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,720,000 note receivable by the following modifications: 1. 2. 3. Reducing the principal obligation from $2,720,000 to $2,176,000. Extending the maturity date from December 31, 2020, to January 1, 2024. Reducing the interest rate from 12% to 10%. Grouper pays interest at the end of each year. On January 1, 2024, Grouper Company pays $2,176,000 in cash to American Bank. Part 1 Will the gain recorded by Grouper be equal to the loss recorded by American Bank under the debt restructuring? e Textbook and Media List of Accounts Save for Later Attempts: 0 of 15 used Submit Answer Part 2 Can Grouper Company record a gain under the term modification mentioned above? e Textbook and Media List of Accounts Save for Later Attempts: 0 of 15 used Submit Answer Part 3 Assuming that the interest rate Grouper should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for Grouper Company after the debt restructuring. (Round answers to O decimal places, e.g. 38,548.) GROUPER COMPANY Interest Payment Schedule After Debt Restructuring Effective Interest Rate Reduction Interest of Carrying Expense Amount $ $ Cash Paid Carryin Amount Note Date 12/31/20 $ $ $ 12/31/21 12/31/22 12/31/23 Total $ $ $ $ eTextbook and Media Prepare the interest payment entry for Grouper Company on December 31, 2022. (Round answers to decimal places, e.g. 38,548. 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 Date December 31, 2022 e Textbook and Media List of Accounts Save for Later Attempts: 0 of 15 used Submit Answer Part 5 What entry should Grouper 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 Debit Credit Date December 31, 2024