On 1 January 20x1, DDD Ltd (DDD) acquired bonds with a nominal value of $100,000 issued by EEE Ltd (EEE). The bonds have a coupon rate of 6% and mature in 3 years. Coupon interest is payable on the 31 December of each year, with the first payment being made on 31 December 20x1. The effective interest rate at the time of acquisition was 5%. On 31 December 20x1, the fair value of the bond was $102,000. On 1 April 20x2, DDD disposed of the bonds at a price of $103,000. Both DDD and EEE adopt the Singapore FRSs and have December 31 year-ends. When presenting your answers, please round all answers to the nearest dollar.

a) If DDD holds the bonds until maturity and the company adopts amortised cost classification, show all the relevant journal entries for the entire period from inception until settlement at maturity. Assume no disposal for this part of the question only. Journal narratives are required.

b) Apply FRS 109 Financial Instruments and illustrate the accounting of these bonds by preparing necessary journal entries in DDDs books for the years ended 31 December 20x1 and 31 December 20x2 if the bonds are classified as measured at fair value through other comprehensive income.

c) Apply FRS 109 Financial Instruments and discuss how the accounting of these bonds would differ from part (b) above if the bonds had been designated as measured at fair value through profit or loss on 1 January 20x1. Prepare the relevant journal entries for your discussion.