OG Corporation

During the start of 2020, OG Corporation planned to acquire debt investments as part of its financial plan for the year. The Company acquiredP6,500,000 of Nigma Corporation's 12% bonds on May 1, 2020 at 94 plus accrued interest. No further transaction costs were paid upon acquisition. Based on the OG's assessment, the Company assessed that the investment has a hold-to-collect business model and it evidently passed the contractual cash flows test. The bonds were issued on March 1, 2020 and is due on March 1, 2024. The bondspay interest quarterly on March 1, June 1, September 1, and December 1.OG's year-end date is December 31 and the amortization is done by OG following the straight line method.

On May 1, 2022, all of the bonds acquired were sold at 105 plus accrued interest.

PLEASE ANSWER THE FOLLOWING QUESTIONS THANK YOU

Question 1: OG Corporation assessed that the bonds purchased with Nigma should be classified as:

Group of answer choices

Amortized cost

Fair value through profit or loss- Irrevocable designation

Fair value through profit or loss- held for trading

Fair value through other comprehensive income

Question 2: Considering OG Corporation's method of amortization, themonthly amortizationshould be recorded at(Round off to nearest whole number)

Question 3: Based on the information above, interest income is first paid on what date?

Group of answer choices

September 1, 2020

December 1, 2020

June 1, 2020

March 1, 2020

Question 4: As of March 1, 2020, how much is the total credit to Cash account?(Round off to nearest whole number)

Question 5: As of December 31, 2020, how much is the total amortization during the year with a corresponding debit to Bond investment account?(Round off to nearest whole number)

Question 6: How much is the total interest income recognized by OG during 2020?(Round off to nearest whole number)

Question 7: As of May 1, 2022, how much is the gain on sale of bond investment ?(Round off to nearest whole number)

Question 8: As of May 1, 2022, how much is thetotal cash receivedon the sale of bond investment?(Round off to nearest whole number)

Question 9: Just before the sale of bond investment on May 1, 2022, how much is thecarrying amount of the bond investment?(Round off to nearest whole number)