On January 1, 1996, Shinra Inc. purchased $55,000,000 in 20% bonds that will mature in 6 years. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity, the market yield was 15%. Interest is received semiannually on June 30 and December 31.

Note: Shinra Inc. follows IFRS.

Instructions:

1. Prepare the journal entry to record Shinra Inc.'s investment on January 1, 1996.

2. Prepare the journal entry by Shinra Inc. to record interest on June 30, 1996.

3. Prepare the journal entry by Shinra Inc. to record interest on December 31, 1996.

4. Determine what would be the reported carrying value of the investment as at December 31, 1996. Please make sure your final answer is rounded to 2 decimal places (to the nearest ten thousand dollars) for this answer.