On December $31,2020,$

Jordan Co$.$ is in financial difficulty and cannot pay a note and its interest

due that day. It is a $$700,000$ note payable and $$50,000$ accrued interest

payable to Arab Bank. Arab Bank agrees to accept from Jordan Co$.$ a building

that has a fair value of $$680,000.$ The cost of the building was $$900,000$ and

the accumulated depreciation on December $31,2020,$ was $$200,000.$

Compute the following:

a ; Gain or loss from disposal of the building

b : Gain or loss from extinguishment of the notes payable

c : Prepare the required journal entry for this transaction