At January 1, 2013, TD owed First Bank $300,000, under an 11% note with three years remaining to maturity. Due to financial difficulties, TD was unable to pay the previous year's interest. First Bank agreed to settle TD's debt in exchange for land having a fair value of $225,000. TD purchased the land in 2009 for $162,000.
Required:
Prepare the journal entry(s) to record the restructuring of the debt by TD.

Question

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The Answer of At January 1, 2013, TD owed First Bank $300,000, under an 11% note with three years remaining to maturity. Due to financial difficulties, TD was unable to pay the previous year's interest. First Bank agreed to settle TD's debt in exchange for land having a fair value of $225,000. TD purchased the land in 2009 for $162,000.
Required:
Prepare the journal entry(s) to record the restructuring of the debt by TD.

At January 1, 2013, TD Owed First Bank $300,000, Under