the question is what amount of loss should first bank recognize in relation to the loans owed by bliss company?

Bliss Company owes First Bank 30 million under a 10% note with two years remaining maturity. Due to financial difficulties of Bliss Company, the previous year's interest (P 3 million) was not paid. First Bank agrees to; forgive the interest accrued from last year, reduced the two interest payments to 2 million each and reduced the principal to 25 million. The current prevailing rate of int erest is 11%