On May 01, 2020 (the issue date of the bonds), ACME Incorporated paid $735,113 to purchased bonds to yield an 8% return and classified the purchase as an amortized cost method investment. The bonds have a $800,000 face value, five-year term, and a 6% coupon rate paid semi-annually on October 31 and April 30. ACME has a December 31 year end and follows IFRS.

Required:

(a) Prepare the required journal entry to record the receipt of the first interest payment. Round your final answer to the nearest dollar and show calculations below the journal entry.

(b) Prepare the 2020 year-end adjusting entry for the bond investment. Round your final answer to the nearest dollar and show calculations below the journal entry.

(c) If ACME reported under ASPE what alternative method could the company use to amortize the bond discount/premium?