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On July 1 Year 1, Singh Accounting Corp. (Singh) bought $2,000,000 of 4.5%, seven-year bonds that pay interest semi-annually on June 30 and December 31.
On July 1 Year 1, Singh Accounting Corp. (Singh) bought $2,000,000 of 4.5%, seven-year bonds that pay interest semi-annually on June 30 and December 31. The market rate of interest on July 1, was 6%. The market value of the bonds on June 30, Year 2, was $1,838,000. The company's business model is to hold the bond solely to collect the contractual cash flows. Singh reports its financial results in accordance with IFRS. At what amount will Singh report the bonds on its June 30, Year 2, SFP? A $1,850,690 B $1,830,559 C $1,838,000 D $1,852,480
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