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On January 1, 2020, Whispering Winds Corp, acquires $311,000 of Spider Products Inc. 7% bonds at a price of $287.798. The interest is payable each
On January 1, 2020, Whispering Winds Corp, acquires $311,000 of Spider Products Inc. 7% bonds at a price of $287.798. The interest is payable each December 31, and the bonds mature on December 31, 2022. The investment will provide Whispering Winds Corp. with a 10% yield. Whispering Winds Corp, applies IFRS and accounts for this investment using the amortized cost model. (a) Prepare a three-year bond amortization schedule. (Round answers to decimal places, eg. 5,275) Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Cash Received Interest Income Bond Discount Amortization Carrying Amount of Bonds $ $ $ $
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