On June 30, 2015, Pacman Ltd. purchased $1,000,000 of 10 year 4% bonds and classified them as FVTPL. The market rate at time of purchase was 5%. Interest is paid semi-annually on June 30 and December 31. Pacman follows IFRS 9. On December 31,2015, the market rate was 4.6%. On June 30, 2016, Pacman sold all the bonds for $940,000 plus accrued interest.

a. Calculate the purchase price of the bonds.

b. Make a bond amortization table for the first two interest periods

c. Show the journal entries related to the investment in bonds.