Windsor Corp. owes Wildhorse Corp. a $118,290, 10-year, 10% note issued at par plus $11,829 of accrued interest. The note is due today, December 31, 2020. Because Windsor Corp. is in financial trouble, Wildhorse Corp. agrees to forgive the accrued interest and $10,030 of the principal, and to extend the maturity date to December 31, 2023. Interest at 10% of the revised principal will continue to be due on December 31 of each year. Assume the market rate of interest is 10% at the date of refinancing. Windsor and Wildhorse prepare financial statements in accordance with IFRS.

1. Prepare a schedule of the debt reduction and interest expense for the years 2020 through 2023

2. Calculate the gain or loss for Wildhorse Corp.