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On December 31, 2020. American Bank enters into a debt restructuring agreement with Pearl Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par. $3,890,000 note receivable by the following modifications: 1. 2. 3. Reducing the principal obligation from $3.890.000 to $3.112.000. Extending the maturity date from December 31, 2020, to January 1, 2024. Reducing the interest rate from 12% to 10%. Pearl pays interest at the end of each year. On January 1, 2024. Pearl Company pays $3,112,000 in cash to American Bank Can Pearl Company record a gain under the term modification mentioned above? eTextbook and Media List of Accounts Save for Later Attempts: 0 of 15 used Submit Answer Part 3 Assuming that the interest rate Pearl should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for Pearl Company after the debt restructuring (Round answers to decimal places, eg 38,548) PEARL COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate Reduction Interest of Carrying Expense Amount $ Cash Paid Date $ $ 12/31/20 $ $ 12/31/21 12/31/22 12/31/23 Total $ $ $ Prepare the interest payment entry for Pearl Company on December 31, 2022. (Round answers to decimal places.eg 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2022 eTextbook and Media List of Accounts Save for Later Attempts: 0 of 15 used Submit Answer Part 5 What entry should Pearl make on January 1, 2024? (Round answers to decimal places, eg 38.548. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date December 31, 2024

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