Nu SA's debt to a bank has a carrying amount of 2,400,000. The parties modify the terms and Nu concludes that the new terms are substantially different. The fair value of the new liability is 2,250,000; Nu pays the bank fees of 30,000 in cash on the occasion of the modification. Record the entry for the modification.
- Carrying amount of the old debt
- 2,400,000
- Fair value of the new liability
- 2,250,000
- Fees paid
- 30,000