On December 31, 20x1, Salt Co. is in financial difficulty and cannot pay a note due that day. It is a $3,000,000 note with $300,000 accrued interest payable to Pepper, Inc. Pepper agrees to accept from Nobel machinery that has a fair value of $1,450,000, an original cost of $2,400,000, and accumulated depreciation of $1,150,000. Pepper also forgives the accrued interest, extends the maturity date to December 31, 20x4, reduces the face amount of the note to $1,250,000, and reduces the interest rate to 6%, with interest payable at the end of each year. Salt should recognize a gain on the restructure of the debt of O $1.825.000. $75,000 $375,000 $275,000