On December 31, 2023, Blossom Bank enters into a debt restructuring agreement with Kingbird Inc., which is now experiencing financial trouble. The bank agrees to restructure a $2.1-million, 10% note receivable issued at par by the following modifications: 1. Reducing the principal obligation from $2.1 million to $2.00 million 2. Extending the maturity date from December 31, 2023, to December 31, 2026 3. Reducing the interest rate from 10% to 8% Kingbird pays interest at the end of each year. On January 1, 2027, Kingbird Inc. pays $2.00 million in cash to Blossom Bank. Blossom Bank prepares financial statements in accordance with IFRS 9. There is no evidence of a significant increase in credit risk and 12-month expected credited losses are calculated at zero. For simplicity, assume that Blossom Bank had not recognized any impairment prior to this (although it likely would have done so under the expected loss model). 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. (a) What interest rate should Blossom Bank use to calculate the loss on the debt restructuring? Interest rate % Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the loss that Blossom Bank will accrue based on the debt restructuring. (Hint: Refer to Chapter 3 for tips on calculating.) Prepare the journal entry to record the loss. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.)