Question VIII: Sebastian Chair Company, Inc., was indebted to First Lincoln Bank under a S26 million, 10% unsecured note. The note was signed January 1, 2008, and was due December 31, 2021. Annual interest was last paid on December 31, 2016. At January 1, 2018, Sebastian Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement Required: Prepare all journal entries by First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years, relating to the debt under each of the independent circumstances below 1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $22 million but carried on Sebastian Chair Company's books at $19 million. 2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b) reduce the remaining four interest payments to $1.6 million each, and (c) reduce the principal to $21 million. 3. First Lincoln Bank agreed to defer all payments (including accrued interest) until the maturity date and accept $33,000,000 at that time in settlement of the debt. No General Journal Debit Credit