Luke Corp purchased $60,400 of 6-year, 7% bonds of Reed Inc. for $57,566 to yield an 8% return and classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually.

Assuming Luke Corp applied IFRS, prepare its journal entries for the purchase of the investment and receipt of semi-annual interest and discount amortization for the first two interest payments that will be received.