please show work and formulas and be clear. thank you.

On December 31, 2020, Sheridan Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bark agrees to restructure : 12%, sued at par, $4,200,000 note receivable by the following modifications: 1. Reducing the principal obligation from $4,200,000 to $3,360,000 2. Extending the maturity date from December 31, 2020, to January 1, 2024 3. Reducing the interest rate from 12% to 10%. Barkley pays interest at the end of each year. On January 1, 2024, Barkley Company pays $3,360,000 in cash to Sheridan Bank. Answer the following questions related to Sheridan Bank (creditee). Your answer is correct. What interest rate should Sheridan Bank use to calculate the loss on the debt restructuring (Round answer to deal places.. 109.) Interest rate 12 (1) Compute the loss that Sheridan Bank will suffer from the debt restructuring. (Round answer to decimal places, e.g. 38,548.) Loss on restructuring of debt (2) Prepare the journal entry to record the loss. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation December 31, 2020