Your answer is partially cormect. How should Ivanhoe report the following in its 2025 income statement? 1. Gain or loss on the disposition of machine 2. Gain or loss on restructuring of debt Solution Assumie that, instead of transferring the mochine, lvanhoe decides to grant 13,000 shares of its common stock ( $10 par) which has a fair value of $166,000 in fuil settiement of the kan obligation. If Shamrock State Bank treats lvanhoe's stock ws a tradine List all debit entrien before credit entries Do not indent manuolfy ust all dobit endries before credit entrier) Ivanhoe Company owes $190,000 plus $16,600 of accrued interest to Shamrock State Bank. The debt is a 10-year, 10% note. During 2025 , Ivanhoe's business deteriorated due to a faltering regional economy. On December 31, 2025, Shamrock State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $344,000, accumulated depreciation of $189,200, and a fair value of $166,000. (a) Your answer is correct. Prepare journal entries for ivanhoe Company and Shamrock State Elank to record this debt settlement. (ff no entry is requined, select "No Entry" for the account titles and enter Ofor the amounts. Credit account tities are outomotically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries