On December $31,2025.$ American Bank enters into a debt restructuring agreement with Ayayai Company, which is now experiencing financial trouble. The bank agrees to restructure a $12\%,$ issued at par, $$2,930,000$ note receivable by the following modifications:

$1.$ Reducing the principal obligation from $$2,930,000$ to $$2\mathrm{.}344,000.$

$2.$ Extending the maturity date from December $31,2025,$ to January $1,2029.$

$3.$

Reducing the interest rate from $12\%$ to $10\%.$

Ayayai pays interest at the end of each year. On January $1,2029,$ Ayayai Company pays $$2\mathrm{.}344,000$ in cash to American Bank.

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Will the gain recorded by Ayayai be equal to the loss recorded by American Bank under the debt restructuring? Can Ayayai Company record a gain under the term modification mentioned above? Assuming that the interest rate Ayayai should use to compute interest expense in future periods is $1\mathrm{.}4276\%,$ prepare the interest payment schedule of the note for Ayayai Company after the debt restructuring. $($Round answers to $0$ decimal places, e$.$g$.38,548.)$ Prepare the interest payment entry for Ayayai Company on December $31,2027.($Round answers to $0$ decimal places, eg$.38,548.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$ What entry should Ayayai make on January $1,2029?($Round answers to $0$ decimal places, eg$.38,548.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.$)$