Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $$20$ million, $10\%$ unsecured note. The note was

signed January $1,2014,$ and was due December $31,2027.$ Annual interest was last paid on December $31,2022.$ At January $1,2024,$

Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt

agreement.

Note: Use appropriate factor$($s$)$ from the tables provided. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

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:

First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $$16$ million but carried on Rothschild Chair

Company's books at $$13$ million.

First Lincoln Bank agreed to $($a$)$ forgive the interest accrued from last year, $($b$)$ reduce the remaining four interest payments to $$1$

million each, and $($c$)$ reduce the principal to $$15$ million.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required $1$

First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $$16$ million but carried on Rothschild

Chair Company's books at $$13$ million.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your

answers in millions.