Sunland Corp. currently has an issued debenture outstanding with Abbra Bank. The note has a principal of $4 million, it was issued at face value, and interest is payable at 7%. The term of the debenture was 10 years, and it was issued on December 31, 2016. The current market rate for this debenture is 9%. Sunland has been experiencing financial difficulties and has asked Abbra Bank to restructure the note. Both Sunland and Abbra Bank prepare financial statements in accordance with IFRS. It is currently December 31, 2023. For each of the following independent situations related to the above scenario, prepare the journal entries that Sunland and Abbra Bank would make for the restructuring that is described. (b) - Your answer is partially correct. Abbra Bank has agreed to accept a building in exchange for relinquishing this debenture. The building has a carrying amount of $400,000 (original cost was $1,900,000) and a fair value of $3.5 million. Assume that the bank had already recognized a loss on impairment. (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. List all debit entries before credit entries.) On the books of Sunland Corporation: On the books of Sunland Corporation: Account Titles and Explanation Notes Payable Buildings Gain on Restructuring of Debt On the books of Abbra Bank: Debit 4000000 Credit 3500000 Account Titles and Explanation Debit Credit 500000 J Abbra Bank agrees to modify the note by allowing Sunland not to pay the interest on the note for the remaining period. (Hint: Refer to Chapter 3 for tips on calculating and use the time value of money tables.) Assume that the bank had not previously recognized any loss on impairment. (Round discount factors to 6 decimals e.g. 0.527500 and final answers to O decimal places, e.g. 5,275. 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. List all debit entries before credit entries.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. On the books of Sunland Corporation: Account Titles and Explanation Debit Credit Account Titles and Explanation Debit Credit On the books of Abbra Bank: On the books of Abbra Bank: Account Titles and Explanation Debit Credit