KIM CorpOwned a Major Business Building in a Small Canadian City

Essay

KIM Corp.owned a major business building in a small Canadian city.The building has a
$1,155,000 mortgage that is held by a Canadian financial institution (FI).KIM Corp.has had recent cash flow problems, in part, due to the low vacancy rates in the business buildings.Interest is 15 months in arrears and totals $132,000.After discussions with the FI, they agree to a financial reorganization that results in the FI accepting $800,000 from the shareholders who agree to inject this amount of cash into the business.
Required:
Prepare the journal entry to record the exchange.What is this called?