On January 1, 2018, Morgan Company acquires Nicklaus, Inc., bonds at a price of $106.418. The nominal value of bonds is 100.000 $ and nominal interest rate is %10. The interest is payable each December 31, and the bonds mature in 10 years. The investment will provide Morgan Company a 10% yield.

Required Assume bond is classified as Financial Asset at Amortized Cost, make the journal entries for the years 2018 and 2019. Assume bond is classified as Financial Asset at Fair Value Through Profit or Loss (FAFVTPL). The fair value of the bond on December 31,2018 was 106.000 $. Make the necessary journal entries.