Sarasota Co. owes $183,100 to Ivanhoe Inc. The debt is a 10-year, 11% note. Because Sarasota Co. is in financial trouble, Ivanhoe Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $85,900 and a fair value of $132,500.

(a)		Prepare the journal entry on Sarasotas books for debt restructure.
(b)		Prepare the journal entry on Ivanhoes books for debt restructure.

No. Account Titles and Explanation Debit Credit (a) Sarasota Co.'s entry: (b) Ivanhoe Inc. entry