Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments during December 2021:

1. Two hundred and fifty of Donald Companys $1,000 bonds. The bonds pay semiannual interest, return principal in 10 years, and include no other cash flows or other features. Feherty plans to hold 100 of the bonds to collect contractual cash flows over the life of the investment and to hold 150, both to collect contractual cash flows but also to sell them if their price appreciates sufficiently. Subsequent to Fehertys purchase of the bonds, but prior to December 31, the fair value of the bonds increased to $1,030 per bond, and Feherty sold 100 of the 150 bonds. Feherty also sold 30 of the 100 bonds it had planned to hold to collect contractual cash flows over the life of the investment. The fair value of the bonds remained at $1,030 as of December 31, 2021.
2. $27,000 of Watson Company common stock. Feherty does not have the ability to significantly influence the operations of Watson. Feherty elected to account for this equity investment at fair value through OCI (FVOCI). Subsequent to Fehertys purchase of the stock, the fair value of the stock investment increased to $34,000 as of December 31, 2021.

Required: 1. Indicate how Feherty would account for its investments when it acquired the Donald bonds and Watson stock. 2. For each of the following categories of Feherty's investments, calculate the effect of realized and unrealized gains and losses on Fehertys net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021: (a) any Donald bonds accounted for at amortized cost that were purchased and held at year end, (b) any Donald bonds accounted for at amortized cost that were purchased and sold, (c) any Donald bonds accounted for at FVOCI that were purchased and held at year end, (d) any Donald bonds accounted for at FVOCI that were purchased and sold, and (e) the Watson stock. Ignore interest revenue and taxes.

COMPLETE THIS QUESTION:

1. Indicate how Feherty would account for its investments when it acquired the Donald bonds and the Watson company stock.
   1. The Donald Company 100 bonds held to collect contractual cash flows = (select one: Amortized cost, FVOCI, FVPL)?
   2. The Donald Company 150 bonds held for trading purposes = (select one: Amortized cost, FVOCI, FVPL)?
   3. The Watson Company stock would be accounted for = (select one: Amortized cost, FVOCI, FVPL)?
2. For any Donald bonds accounted for at amortized cost that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Fehertys net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021.
   1. Net income = $
   2. Other Comprehensive Income = $
   3. Net effect on Comprehensive Income = $
3. For any Donald bonds accounted for at amortized cost that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Fehertys net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021.
   1. Net income = $
   2. Other Comprehensive Income = $
   3. Net effect on Comprehensive Income = $
4. For any Donald bonds accounted for at FVOCI that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Fehertys net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021.
   1. Net income = $
   2. Other Comprehensive Income = $
   3. Net effect on Comprehensive Income = $
5. For any Donald bonds accounted for at FVOCI that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Fehertys net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021.
   1. Net income = $
   2. Other Comprehensive Income = $
   3. Net effect on Comprehensive Income = $
6. For the Watson stock, calculate the effect of realized and unrealized gains and losses on Fehertys net income, other comprehensive income, and comprehensive income for the year ended December 31, 2021. Ignore interest revenue and taxes.
   1. Net income = $
   2. Other Comprehensive Income = $
   3. Net effect on Comprehensive Income = $