Sport's Video Corp. $($SVC$)$ is a start$-$up sports video processing company that sells indexed video clips to media companies so they can quickly add the clips to stories they publish. SVC hopes to go public in a few years, and so although the company reports under ASPE, the financial statements are prepared using policies that would also be acceptable under IFRS.

In order to expand operations, SVC needs to invest in technology and additional staff. The CFO secured a $6$ year $$650,0008\%$ note payable from a group of private investors. However, just before the deal closed on April $1,2020,$ COVID restrictions were put in place, causing uncertainty and disarray in professional sports schedules. The investors balked at the last minute, demanding a higher interest rate. Ultimately SVC agreed to a $10\%$ yield. The notes pay interest semi$-$annually on September $30$ and March $31$ each year. SVC has a March $31$ year end date.

$1.$

Provide the journal entries to record the notes at inception and at the first interest payment date

Assume instead that ASC elected to use the straight$-$line approach for recording interest and amortizing the discount. What amount of interest expense would have been recorded for the first interest payment on September $30,2020?$

Why does ASPE allow the straight$-$line approach when IFRS doesn't?