Derecognition of a Liability: Alliance Corp has a $1 million note payable due to its founder, Tom Baker. Mr. Baker is recently deceased and has no heirs that Alliance Corp’s executive team is aware...

Derecognition of a Liability: Alliance Corp has a $1 million note payable due to its founder, Tom Baker. Mr. Baker is recently deceased and has no heirs that Alliance Corp’s executive team is aware of. Alliance Corp has asked for your help in determining whether it is appropriate to derecognize the liability from its financial statements.Required:1. Citing guidance from the Codification, respond to Alliance Corp.2. Explain to Alliance Corp’s management how you located the relevant guidance, including search method used and which section you searched within the appropriate topic.