XYZ and ABC Bank each make a loan of $1,000,000 at 4% interest to a technology startup, Innovate, in January of 2022. Unfortunately, Innovate makes only 4 payments. Innovate defaulted and became unlikely to repay its debt. ABC decides to retain the asset in hopes of recovering part of the loan one day while XYZ decides to write off the lost asset. Assume all other items between the banks are the same. James, a financial analyst, is evaluating both banks' financials. He wants to make the firm's financial statements comparable. What would he need to change if he believes that the loan to Innovate will never be recovered?