Pina Company owes $182,000 plus $16,500 of accrued interest to Grouper State Bank. The debt is a 10-year, 10% note. During 2020, Pina's business deteriorated due to a faltering regional economy. On December 31, 2020, Grouper State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $355,000, accumulated depreciation of $195,250, and a fair value of $165,000.