J. Cаsh Bаnk (“the Bаnk”) lоaned $5,000,000 tо Denver Cоmpany (“the Company”). At the end of 2022, the Company was experiencing financial difficulties and the Company notified the Bank that it could no longer meet its loan obligations. At this point, the Bank determined that the loan was impaired. To settle the loan, the Bank agreed to accept real estate from the Company, to be transferred at the beginning of 2023. The real estate had a fair value of $3,500,000. On January 15, 2023, the Company transfers the real estate to the Bank and the loan is formally settled. What is the net impact to the Bank’s 2023 net income when the loan is settled in 2023?