On $1$ January $20$X$2,$ Mario Company purchased $$800,000$ of Luigi Corp. $5\%$ bonds, classified as

an Amortized Cost investment. The bonds pay semi$-$annual interest each $30$ June and $31$

December. The market interest rate was $6\%$ on the date of purchase. The bonds mature on $30$

December $20$X$11.$ Fair value on December $31,20$X$2$ was $$750,000.$

Required:

$1.)$ Calculate the price paid by Mario for the bond. $($Fair value reflects the price paid$).$

$2.)$ Construct a table that shows interest revenue reported by Mario, and the carrying value of

the investment, for the first two interest periods.

$3.)$ Prepare the journal entry for the first interest payment.

$4.)$ Assume Mario Company classified this bond as FVOCI instead, what journal entries

would be required on December $3120$X$2?$

$5.)$ Assume Mario Company classified this bond as FVTPL instead, what journal entries

would be required on December $3120$X$2?$