8:32 Bubeytiii Assignment 2 inte... Intermediate accounting 2 Second assignment Due date: 191112022 Student Name: Question one: select the correct answer 1. Held-for-collection investments are reported at acquisition cost. amortized cost. c. maturity value. a fair value. 2. If the investor owns 60% of the investee's outstanding ordinary shares, the investor should generally account for this investment under the cost method. b fair value method. c. consolidation equity method. 6. consolidation method. 3 Koehn Corporation accounts for its investment in the ordinary shares of Sells Company under the equity method. Koehn Corporation should ordinarily record a cash dividend received from Sells as a reduction of the carrying value of the investment. b. share premium. e an addition to the carrying value of the investment. e dividend income. 4. IFRS requires companies to measure their financial assets based on all of the following except The company's business model for managing its financial assets. Whether the financial asset is a debt or equity investment. The contractual cash flow characteristics of the financial asset. All of these answer choices are IFRS requirements. s Which of the following are reported at fair value? Debt investments. 6. Equity investments. Both debt and equity investments. None of these answers choices are correct. Question two: Assume that Robinson SA purchased 100,000 of 8 percent bonds of Evermaster AG on January 1, 2022, at a discount, paying 92.278. The bonds mature January 1, 2027 and yield 10 percent; interest is payable each July 1 and January 1. 1-Record the investment entry. > Record the receipt of the first semiannual interest payment on July 1, 2022. 8:32 Bubeytiii assignment 1 inte... Intermediate accounting 2 Student Name: First assignment Due date: 191112022 Question one: select the correct answer 1- Bonds for which the owners' names are not registered with the issuing corporation are called a. b. c. d. bearer bonds. term bonds. debenture bonds. secured bonds. 2- Bonds that pay no interest unless the issuing company is profitable are called collateral trust bonds. a. b. debenture bonds. c. revenue bonds. d. income bonds. 3- Reich, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that a. the effective yield or market rate of interest exceeded the stated (nominal) rate. b. c. d. rate. the nominal rate of interest exceeded the market the market and nominal rates coincided. no necessary relationship exists between the two rates. 4- When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will a. b. increase if the bonds were issued at a discount. decrease if the bonds were issued at a premium. C. increase if the bonds were issued at a premium. increase if the bonds were issued at either a discount or a premium. d. 5. The term used for bonds that are unsecured as to principal is a. b. junk bonds. debenture bonds. C. indebenture bonds. d. callable bonds. Question two: 8:32 Bubeytiii assignment 1 inte... 4- When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will a. b. C. d. increase if the bonds were issued at a discount. decrease if the bonds were issued at a premium. increase if the bonds were issued at a premium. increase if the bonds were issued at either a discount or a premium. 5- The term used for bonds that are unsecured as to principal is a. b. C. d. junk bonds. debenture bonds. indebenture bonds. callable bonds. Question two: Assume Evermaster AG issued 100,000 of 8 percent term bonds on January 1, 2022, due on January 1, 2027, with interest payable each July 1 and January 1. Because the investors required an effective-interest rate of 10 percent, they paid 92,278 for the 100,000 of bonds, creating a 7,722 discount. 1. Record the issuance of bonds at a discount on January 1, 2022. 2. Record the first interest payment on July 1, 2022, and amortization of the discount