Ridgeway Builders, Inc., is in the residential construction industry and has been experiencing a business downturn. As a result of these economic conditions, the company is having difficulty serving its outstanding debt and is seeking relief outside of the bankruptcy courts. The following summarizes outstanding debt and management€™s proposed restructuring:

For each of the above debts, determine the gain or loss on restructuring and the interest expense to be recognized for the 6-month period after the restructuring.

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Outstanding Debt Stated interest rate.. 6% 3% 10% 6% $80,000 $500,000 $320,000 $340,000 10,000 $84,000 $520,000 $328,000 $350,000 4,000 20,000 8,000 Components of restructuring Transfer of assets 40,000 48,339 Book value of assets.._. . 60,000 100,000 120,000 Issuance of common stock 240,000 380,000 At market value . . . . Revised semiannual payments 75,000 4 Amount of p ayment 64,000 Number of payments