On 1 January 2005, Franco Ltd, purchased $470.000 of Gentron Company 7.00% bonds. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 8% on the date of purchase. The bonds mature on 31 December 2010 (PV of $1. PVA of S1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Franco Ltd. (Round time value factor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Pitce paid 2. Assume that the bond is classified as an AC investment Construct a table that shows interest revenue reported by Franco, and the carrying value of the investment, for four interest periods. Use the effective interest method. (Round your answers to the nearest whole dollar amount.) Period Cash Payment Interest Revenue Amortization Bond Carrying Value 0 1 2 3 4 my work 3. Prepare the entries for the first four interest periods based on your calculations in requirement 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction line x 1 Record the first period revenue. 2 Record the second period revenue. 3. Record the third period revenue Record the fourth period revenue Credit Check my work 4 Assume instead that the bond is classified as a FVTPL investment, and the fair value at the end of 2005 was $455.000, and was $459,500 at the end of 2006. Prepare the entries for each interest period in 2005 and 2006, and adjust the bond to fair value at the end of each tiscal year. (That is the bond is not adjusted to fair value at each interest payment date, just at the reporting date) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list X 1 Record the first period revenue ? Record the second period revenue. 3 Record the holding gain/loss on investment for the year ended 2005 4 Record the third period revenue 5 Record the fourth berlod revenue, Credit 5. Show how the bond would be presented on the statement of financial position at the end of 2005 and 2006, if it were (a) AC and (b) FVTPL. (Round your answers to the nearest whole dollar amount.) 2006 2005 (6) AC Investment Investment in Gentron bond (b) FVIPL Investment Investment in Gentron bond