On January 1, 2019 Ottawa Limited issued a 7 year 6.00% $1,300,000 bond payable to Montreal Bank. Interest payment dates are June 30 and December 31 and the bonds were issued to provide a semi-annual yield of 2.00%. By December 2021 Ottawa Limited is in financial difficulties and is about to miss the December 31, 2021 interest payment. Ottawa Limited negotiates an arrangement with Montreal Bank whereby Montreal Bank agrees to waive the December 31, 2021 interest payment and to replace, effective December 31, 2021, the above bond with an 8 year $1,100,000 face value bond bearing 10.00% annual interest, payable semi-annually. Due to Ottawa Limited's precarious situation, lenders would normally seek a semi-annual return of 8.00% on this 'bail-out' financing. Required (to earn marks, all supporting calculations must be provided) 1) If Ottawa Limited applies IFRS provide its journal entry on December 31, 2021 to record this debt restructuring arrangement. 2) Assume Ottawa Limited applies ASPE. How would Ottawa Limited account for this debt restructuring arrangement on December 31, 2021.