Sage Hill Inc. owes Coronado Bank $175,000 plus $15,800 of accrued interest. The debt is a 10-year, 10% note. During 2020, Sage Hill's business declined due to a slowing regional economy. On December 31, 2020, the bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $340,000, accumulated depreciation of $191,000, and a fair value of $155,000. The bank plans to dispose of the machine at a cost of $7,900. Both Sage Hill and Coronado Bank prepare financial statements in accordance with IFRS 9. Prepare the journal entries for Sage Hill Inc. and Coronado Bank to record this debt settlement. Assume Coronado had previously recognized an allowance for doubtful accounts for the impairment prior to the settlement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Dec. 31, Sage Hill Inc. 2020 Dec. 31, 2020 Coronado Bank Debit Credit