Sage Corporation is having financial difficulty and therefore has asked Pronghorn National Bank to restructure its $6 million note outstanding. The present note has 3 years remaining and pays a current rate of interest of 8%. The present market rate for a loan of this nature is 12%. The note was issued at its face value. The following are four independent situations. Prepare the journal entry that Sage and Pronghorn National Bank would make for each of these restructurings. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places, e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

(a)		Pronghorn National Bank agrees to take an equity interest in Sage by accepting common stock valued at $3,798,000 in exchange for relinquishing its claim on this note. The common stock has a par value of $1,690,000.
(b)		Pronghorn National Bank agrees to accept land in exchange for relinquishing its claim on this note. The land has a book value of $3,277,000 and a fair value of $3,866,000.
(c)		Pronghorn National Bank agrees to modify the terms of the note, indicating that Sage does not have to pay any interest on the note over the 3-year period.
(d)		Pronghorn National Bank agrees to reduce the principal balance due to $5,172,414 and require interest only in the second and third year at a rate of 8%.