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Question 3 It is December 31, 2021 and ABC Financing has just entered into a debt restructuring agreement with Vancouver Co. Vancouver has been experiencing

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Question 3 It is December 31, 2021 and ABC Financing has just entered into a debt restructuring agreement with Vancouver Co. Vancouver has been experiencing financial trouble since the beginning of 2021 and recently indicated it might not be able to meet its obligations under the original debt structure agreed to with ABC. ABC has agreed to refinance the $4 million, 12% note receivable, issued at par. The following modifications have been made as a result of the new agreement: Principal obligation reduced from $4 million to $3.9 million Maturity date extended from December 31, 2021 to December 31, 2024 Interest rate reduced from 12% to 10% Vancouver pays interest at the end of each year and prepares its financial statements in accordance with IFRS. Instructions: a. Calculate the present value of the debt obligation for Vancouver under the restructured borrowing agreement. b. Prepare the journal entry that Vancouver should make on December 31, 2020 based on the results of your calculation in part (a). C. Prepare an effective interest amortization table for the remaining term of the note. Use the following format for your table: Effective Interest Increase of Carrying Amount Carrying Amount of Note Date Cash Interest Round percentages to two decimal places. Round final amounts to the nearest dollar. Show ALL calculations for full marks

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