On January $1,2021,$ Mamood Ltd$.$ paid $$322,744\mathrm{.}44$ for $12\%$ bonds of Variation Ltd$.$ with a maturity value of $$300,000.$

The bonds provide the bondholders with a $10\%$ yield. They are dated January $1,2021,$ mature on January $1,2026,$ and pay interest each December $31.$

Mamood acquired the bond investment as part of its portfolio of trading securities and it accounts for the bonds at FV$-$NI$,$ following IFRS.

At December $31,2021,$ Mamood$$s year end, the bonds had a fair value of $$320,700.$

During $2022,$ the economic outlook related to Variation$$s primary business took a major downturn, so that Variation$$s debt was downgraded.

By the end of $2022,$ the bonds were priced at $85\mathrm{.}5,$ and at December $31,2023,$ they were selling in the market at $87.$

Conditions reversed in $2024$ and the outlook for Variation significantly improved, leaving its bonds with a fair value of $99\mathrm{.}5$ at December $31,2024.$

Instructions

c$.$ Prepare all entries required for $2022,$ including recognition of the impairment in value if necessary, and for $2023.$

d$.$ Prepare all entries required for $2024,$ including recognition of the recovery of the impairment in value, if necessary.