At January 1, 2021, Transit Developments owed First City Bank Group $720,000, under an 9% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the previous year's interest.First City Bank Group agreed to settle Transit’s debt in exchange for land having a fair value of $570,000. Transit purchased the land in 2017 for $385,000. Required:Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments. - Record any necessary adjustment prior to recording the exchange for debt. - Record the exchange of land to settle debt.

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