On December $31,2025,$ American Bank enters into a debt restructuring agreement with Ivanhoe Company, which is now experiencing financial trouble. The bank agrees to restructure Your answer is correct.

Prepare the journal entries to record the gain on Ivanhoe's books. $($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.$)$

Date

Account Titles and Explanation

Credit

December $31,2025$

Notes Payable

Gain on Restructuring of Debt

$405000$

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List of Accounts $($c$)$

Your answer is incorrect.

What interest rate should Ivanhoe use to compute its interest expense in future periods? $($Do not leave any answer field blank. Enter $0$ for amounts.$)$

Interest rate

$\%($d$).$

Prepare the interest payment schedule of the note for Ivanhoe Company after the debt restructuring.

a $12\%,$ issued at par, $$3,200,000$ note receivable by the following modifications:

Reducing the principal obligation from $$3,200,000$ to $$2,150,000.$

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

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

Ivanhoe pays interest at the end of each year. On January $1,2029,$ Ivanhoe Company pays $$2,150,000$ in cash to American Bank.

$($a$)$

Your answer is correct.

Can Ivanhoe Company record a gain under this term modification?

If yes, compute the gain for Ivanhoe Company. If no$,$ enter amount as $0.$

The gain for Ivanhoe Company $

NEED HELP WITH PART C AND D