On December 31, 2020, Green Bank enters into a debt restructuring agreement with Splish Brothers Inc., which is now experiencing financial trouble. The bank agrees to restructure a $1.8-million, 12% note receivable issued at par by the following modifications: 1. Reducing the principal obligation from $1.8 million to $1.44 million 2. Extending the maturity date from December 31, 2020, to December 31, 2023 3. Reducing the interest rate from 12% to 10% Splish Brothers pays interest at the end of each year. On January 1, 2024, Splish Brothers Inc. pays $1.44 million in cash to Green Bank for the principal. The market rate is currently 10%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.