Star Bank has a P 10,000,000 loan to Estrella Realty, which was invested by the latter in real estate development. Due to the economic downtrend in the real estate business, Estrella Realty is experiencing declining sales and is likely to default on its obligation to Star. Estrella requests for a restructuring of its loan with Star. Prevailing market rate for similar obligations at the time of the restructuring is 8%. Accrued interest receivable on the loan at December 31, 2020 is P 1,000,000. Based on stated interest rate of 10%. Star had not previously recognized any impairment on this Estrella note based on 12-month expected credit loss on date of initial recognition.

• Payment of the accrued interest on the date of restructuring
• Extension of maturity date of the loan to December 31, 2022, with interest during the extended term at 7% payable on December 31, 2021 and 2022.

Give the entry in the books of Star to record the impairment assuming the following agreements.