On December 31, 2013, Samsung Co. is in financial difficulty and cannot pay a note due that day. It is a $750,000 note with $75,000 accrued interest payable to Bayer, Inc. Bayer agrees to forgive the accrued interest, extend the maturity date to December 31, 2013, and reduce the interest rate to 4%. The present value of the restructured cash flows is $642,000.
 
 Instructions
 Prepare entries for the following:
 (a) The restructure on Samsung’s books.
 (b) The payment of interest on December 31, 2014.
 (c) The restructure on Bayer’s books.