1

2

3

4

Si acquired shares that are not part of a held for trading portfolio. The shares are listed on a public stock exchange such that fair value information is readily available. Si management would like to report the shares at fair value on the SFP, however, management does not want holding gains and losses to result in income volatility. How should Si management classify the shares? Si reports under IFRS. Multiple Choice FVTPL FVTOCI Amortized cost Cost Jellybean Inc. (JI) acquired 10 year, 4% bonds with a face value of $1,000,000. The market rate of interest was 5% on the day the bonds were purchased by JI. What is true about the price JI paid for the bonds? Multiple Choice Jl paid face value for the bonds ($1,000,000) JI paid a premium for the bonds (more than face value) Jl paid less than face value for the bonds (bonds were issued at a discount) Blue Inc. (Blue) acquired shares in Air Canada, a public company, for $4,000 on October 1, 2020. These shares will be held in Blue's portfolio of held for trading investments. How should the investment in Air Canada shares be accounted for by Blue, assuming Blue reports under ASPE? Multiple Choice Investment reported at cost or fair value on the balance sheet. Management can make the choice. Reported at fair value on the balance sheet. Unrealized gains and losses reported in net income. Reported at fair value on the balance sheet. Unrealized gains and losses reported in OCI or net income, depending on management preference. Reported at cost on the balance sheet. No gain or loss recorded until investment is sold. Firestone Inc. (FI) reports under IFRS. Fl purchased shares for $13,000 + $500 in transaction costs and classified the shares as FVTPL. What is the impact on net income when the acquisition is recorded? Multiple Choice Decrease of $500 Decrease of $13,500 No impact on net income o O Increase of $13,500