Strickland Company owes $201,400 plus $18,210 of accrued interest to Moran State Bank. The debt is a 10-year, 10% note. During 2014, Strickland's business deteriorated due to a faltering regional economy. On December 31, 2014, Moran State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $397,500, accumulated depreciation of $218,625, and a fair value of $182,100. Prepare journal entries ofr Strickland Company and Moran State Bank to record this debt settlement. (If no entry is required select "No Entry" ofr the account titles and enter O ofr the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) How should Strickland report the ofllowing in its 2014 income statement? Gain or loss on the disposition of machine Gain or loss on restructuring of debt Assume that, instead of transferring the machine, Strickland decides to grant 13,600 shares of its common stock ($10 par) which has a fair value of $182,100 in full settlement of the loan obligation. If Moran State Bank treats Strickland's stock as a trading investment, prepare the entries to record the transaction ofr both parties. (If no entry is required select "No Entry" ofr the account titles and enter O ofr the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)