On Jan 1, 2016, FMT purchased million shares of the following bonds issued by Apple. APPLE INC Coupon rate: 2.450% Maturity Date: 12/31/2026 Payment Frequency: Semi-annual (June 30 and December 31) Face value per share: $100 The total face value of the investment is $100 million. On the purchase day, the yield (market rate) was 2.48%. The market prices per share for the bonds on the last trading day of each year are as the following: 2016: $94.03 2017: $96.12 2018: $92.13 2019: $101.97 2020: $109.18

(Show your answers in Dollars, rounded to two decimal points when necessary. Ignore tax implications.) 1) Prepare an amortization table for the investment in bonds. 2) Prepare the following table.

Date	Amortized Cost	Fair Value	Fair Value Adjustment, desired Balance	Change to be made to Fair Value Adjustment
12/31/2016
12/31/2017
12/31/2018
12/31/2019
12/31/2020

1. Make journal entries and prepare the following summary table for 2016-2018, assuming the bonds were classified as held-to-maturity (HTM) securities

YEAR:	2016	2017	2018
Income Statement Effect
Interest Revenue
Gain (Loss) on Investment (Unrealized-NI)
Gain (Loss) on sale (Realized-NI)
Net Income
Gain (Loss) on Investment (Unrealized-OCI)
Reclassification adjustment (OCI)
Other Comprehensive Income (OCI)
Comprehensive Income (CI)
Balance Sheet Balances
Amortized Cost
Fair Value Adjustment balance
Investment in Bonds (net book value)
Cash Flow Statement Effect
Cash Flow from operating activities
Cash Flow from investing activities

1. Make journal entries and prepare the summary table for 2016-2018 (as in 3)), assuming the bonds were classified as trading securities.
2. Make journal entries and prepare the summary table for 2016-2018 (as in 3)), assuming the bonds were classified as available for sale securities.