Eli Fish Corp. (EFI), a passive investor, owns various investments in debt and equity

securities.

EFI's policy is to prepare journal entries for adjustments and accruals at year end. The

company elects to reclassify reserves (accumulated other comprehensive income) to retained

earnings upon derecognition of investments in equity securities at FVOCI-elect.

EFI engaged in various investment-related transactions as detailed below. All interest and

dividend payments were received on the scheduled payment dates. While the resulting journal

entries will all be entered to the nearest dollar, EFI rounds all dollar-based calculations to the

nearest whole cent (for example, $50.22) and percentages to four decimal places (for

example, 11.9876%). You should do likewise in your supporting calculations.

Intermediate Financial Reporting 1 Project 2

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January 1, 20X1

i) EFI paid $17,500 for 500 common shares of Zoe Corp. and classified this investment at fair

value through profit or loss (FVPL).

ii) EFI paid $24,700 for 100 preferred shares of Meeks Inc. and irrevocably classified this

investment at fair value through other comprehensive income (FVOCI-elect). The preferred

shares each pay a dividend of $1.00 ($100 total) annually on June 30.

iii) EFI paid $102,974 for a $100,000, 5.0% coupon bond issued by Zachary Ltd. that pays

interest on June 30 and December 31 each year. The bond matures on December 31,

20X9. EFI classified this investment at FVPL.

iv) EFI paid $176,618 for a $200,000, 3.0% coupon bond issued by Belle Inc. that pays

interest on June 30 and December 31 each year. The bond matures on December 31,

20X7. EFI classified this investment at fair value through other comprehensive income

(FVOCI).

v) EFI paid $292,189 for a $300,000, 4.0% coupon bond issued by Canaan Corp. that pays

interest on June 30 and December 31 each year. The bond matures on December 31,

20X6. EFI classified this investment at amortized cost.

December 31, 20X1

vi) The market values of the investments were as follows:

Zoe Corp. $17,100

Meeks Inc. $25,200

Zachary Ltd. $101,500

Belle Inc. $183,500

Canaan Corp. $287,600

How would you record the reclassification in value depending for Zachary LTD (FVPL),Belle inc (FVOCI) and Canaan Corp (amortized cost)