$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}\backslash$hline & & & & $\backslash \backslash \backslash$hline ry $1,2022$ & & & & $\backslash$$ $\backslash \backslash \backslash$hline $30,2022$ & $\backslash$$$120,000$ & $\backslash$$$112,748$ & $\backslash$$$7,252$ & $\backslash$$ $\backslash \backslash \backslash$hline mber $31,2022$ & $\backslash$$$120,000$ & $\backslash$$$112,349$ & $\backslash$$$7,651$ & $\backslash$$ $\backslash \backslash \backslash$hline $30,2023$ & $\backslash$$$120,000$ & $\backslash$$$111,928$ & $\backslash$$$8,072$ & $\backslash$$ $\backslash \backslash \backslash$hline mber $31,2023$ & $\backslash$$$120,000$ & $\backslash$$$111,484$ & $\backslash$$$8,516$ & $\backslash$$ $\backslash \backslash \backslash$hline $30,2024$ & $\backslash$$$120,000$ & $\backslash$$$111,015$ & $\backslash$$$8,985$ & $\backslash$$ $\backslash \backslash \backslash$hline mber $31,2024$ & $\backslash$$$120,000$ & $\backslash$$$110,521$ & $\backslash$$$9,479$ & $\backslash$$ $\backslash \backslash \backslash$hline $\backslash$end$\{$tabular$\}$ hancial and operations problems, although Illini made the $\backslash (\backslash$$ $120,000\backslash )$ interest payment that it would not be able to make the required future interest payments and therefor with its debt holders. Suppose the new terms only required a lump sum payment of $\backslash$$ on $\backslash (12/31/24\backslash ).$ Please answer the following two questions. ch gain did Illini record on $12/31/22?8.$ On January $1,2022,$ Illini Company sold $3-$year $\backslash$$$2$ million $12\backslash \%$ bonds for $\backslash$$$2,049,955$ to yield $11\backslash \%.$ The interest is payable semiannually on June $30$ and December $31,$ starting June $30,2022.$ The amortization schedule is as follows.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Date & Payment & Interest Expense & Change & Book Value $\backslash \backslash$

$\backslash$hline January $1,2022$ & & & & $\backslash$$$2,049,955\backslash \backslash$

$\backslash$hline June $30,2022$ & $\backslash$$$120,000$ & $\backslash$$$112,748$ & $\backslash$$$7,252$ & $\backslash$$$2,042,703\backslash \backslash$

$\backslash$hline December $31,2022$ & $\backslash$$$120,000$ & $\backslash$$$112,349$ & $\backslash$$$7,651$ & $\backslash$$$2,035,052\backslash \backslash$

$\backslash$hline June $30,2023$ & $\backslash$$$120,000$ & $\backslash$$$111,928$ & $\backslash$$$8,072$ & $\backslash$$$2,026,979\backslash \backslash$

$\backslash$hline December $31,2023$ & $\backslash$$$120,000$ & $\backslash$$$111,484$ & $\backslash$$$8,516$ & $\backslash$$$2,018,463\backslash \backslash$

$\backslash$hline June $30,2024$ & $\backslash$$$120,000$ & $\backslash$$$111,015$ & $\backslash$$$8,985$ & $\backslash$$$2,009,479\backslash \backslash$

$\backslash$hline December $31,2024$ & $\backslash$$$120,000$ & $\backslash$$$110,521$ & $\backslash$$$9,479$ & $\backslash$$$2,000,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Due to financial and operations problems, although Illini made the $\backslash (\backslash$$ $120,000\backslash )$ interest payment on $\backslash (12/31/22\backslash ),$ it expected that it would not be able to make the required future interest payments and therefore restructured the debt with its debt holders. Suppose the new terms only required a lump sum payment of $\backslash (\backslash$$ $2\backslash )$ million at maturity on $12/31/24.$ Please answer the following two questions.

How much gain did Illini record on $12/31/22?$

$\backslash$$$0$

$\backslash$$$420,618$

$\backslash$$$480,000$

$\backslash$$$35,052$