PART A

PART B

PART A is the second screenshot, I need the third screenshot PART B completed for me.

Crane Inc. owes Waterway Bank $217,000 plus $20,700 of accrued interest. The debt is a 10 -year, 10% note. During 2023 , Crane's business declined due to a slowing regional economy. On December 31, 2023, the bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $404,000, accumulated depreciation of $234,000, and a fair value of $197,000. The bank plans to dispose of the machine at a cost of $5,300. Both Crane and Waterway Bank prepare financial statements in accordance with IFRS 9. Prepare the journal entries for Crane and Waterway Bank to record this debt settlement. Assume Waterway Bank had previously recognized an allowance for doubtful accounts for the impairment prior to the settlement. (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 O for the amounts. List all debit entries before credit entries.) Assume that, instead of transferring the machine, Crane decides to grant the bank 15,000 of its common shares, which have a fair value of $209,000. This is in full settlement of the loan obligation. Assuming that Waterway Bank treats Crane's shares as FV-NI investments, prepare the entries to record the transaction for both parties. Assume Waterway Bank had previously recognized an allowance for expected credit losses for the impairment prior to the settlement. (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 O for the amounts. List all debit entries before credit entries.) Crane Inc. owes Waterway Bank $217,000 plus $20,700 of accrued interest. The debt is a 10 -year, 10% note. During 2023 , Crane's business declined due to a slowing regional economy. On December 31, 2023, the bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $404,000, accumulated depreciation of $234,000, and a fair value of $197,000. The bank plans to dispose of the machine at a cost of $5,300. Both Crane and Waterway Bank prepare financial statements in accordance with IFRS 9. Prepare the journal entries for Crane and Waterway Bank to record this debt settlement. Assume Waterway Bank had previously recognized an allowance for doubtful accounts for the impairment prior to the settlement. (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 O for the amounts. List all debit entries before credit entries.) Assume that, instead of transferring the machine, Crane decides to grant the bank 15,000 of its common shares, which have a fair value of $209,000. This is in full settlement of the loan obligation. Assuming that Waterway Bank treats Crane's shares as FV-NI investments, prepare the entries to record the transaction for both parties. Assume Waterway Bank had previously recognized an allowance for expected credit losses for the impairment prior to the settlement. (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 O for the amounts. List all debit entries before credit entries.)