P14.12 (LO3) (Modification of Note under Different Circumstances) Halvor Corporation is having financial difficulty and therefore has asked Frontenac National Bank to restructure its $5 million note outstanding. The present note has 3 yea market rate for a loan of this nature is 12%. The note was issued at its face value. rs remaining and pays a current rate of interest of 10%. The present Instructions Presented below are three independent situations. Prepare the journal entry tha Halvor would make for each of these restructurings. a. Frontenac National Bank agrees to take an equity interest in Halvor by accepting ordinary shares valued at $3,700,000 in exchange for relinquishing its claim on this note. The ordinary shares have a par value of $1,700,000 b. Frontenac National Bank agrees to accept land in exchange for relinquishing its claim on this note. The land has a book value of $3,250,000 and a fair value of $4,000,000. c. Frontenac National Bank agrees to modify the terms of the note, indicating does not have to pay any interest on the note over the 3-year period