Question 2 (3 marks) Vachon Industries Ltd, has a $5,000,000 note payable outstanding. The terms of the note require repayment of principal on June 30, 20X2. The company is now finalizing the financial statements for the year ended December 31, 20X1. On January 25, 20X2, before the financial statements are released, the company reaches an agreement with the lender to refinance the liability, with a new date June 30, 20X5. Vachon also has committed to donate $200,000 to support the provincial snowboarding association race programs for the year. No donation agreement has yet been signed, but a public announcement has been made, and the company and snowboarding association have met and agreed to the races the funding will support for the season and promotion of Vachon Industries Ltd. through its website. Required: a) If Vachon complies with IFRS, will the note payable be classified as current or long-term liability as at December 31, 20x1? b) Repeat a) assuming that Vachon complies with ASPE. c) How would your answer to part b) change if the note payable was due on February 20, 20X2 and common shares worth $5,000,000 were issued for cash February 28, 20X2 to replenish funds used to repay the note, assuming financial statements were issued March 31, 20X2? d) If Vachon complies with IFRS, will the $200,000 amount be recorded as a liability? Explain your rationale. Question 3 14 marks