Tumer Oil Ltd. borrowed S6 million from Alberta Development Bank (ADB) on Dec 31, 2012, to be repaid in 12 years. Annual interest on the loan (7%) would be paid on Dec. 31 of each year. Following a dramatic drop in oil prices, Turner Oil experienced a severe cash flow crunch and asked ADB to restructure the note on Dec. 31, 2017 (after interest due on that day was paid). Both Turner Oil and ADB follow IFRS. The interest rate on a loan similar to Turner Oil's would carry an interest rate of 5% on Dec 31, 2017 For each independent assumption below, prepare the journal entries that Turner Oil and ADB would make for the restructuring (a) Turner Oil offered to transfer a working motel in downtown Calgary to ADB to settle the loan and ADB agreed to the offer. The model had a book value of $800,000 (original cost: $1,800,000) and a fair value of $3.50 million. ADB had already recognized a loss on impairment ($600,000). (b) ADB and Turner reached an agreement where the principal was reduced to $5 million, and the annual interest rate would be reduced to 4% for the following seven years (after 2017). The bank had not previously recognized any loss on impairment