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Please do Number 3,4,5. Thank you . Show all Calculations. A11-8 Amortized Cost versus FVTPL-Bond Investment: On 1 January 20X5, Franco Ltd. purchased $400,000 of
Please do Number 3,4,5. Thank you . Show all Calculations.
A11-8 Amortized Cost versus FVTPL-Bond Investment: On 1 January 20X5, Franco Ltd. purchased $400,000 of Gentron Company 5% bonds. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 6% on the date of purchase. The bonds mature on 31 December 20X10. Required: Calculate the price paid by Branco 2. Assume that the bond is classified as an investment Construct a table that shows interest tous cepotted by Franco canyone or the investment for four interest periods. Use the effective interest method 3. Give entries for the first four interest periods based on your calculations in requirement 2. 4. Assume instead that the bond is classified as a FVTPL investment, and the fair value at the end of 20x5 was $385,000, and was $391,500 at the end of 20X6. Give entries for each interest period in 20X5 and 20X6, and adjust the bond to fair value at the end of each fiscal year. (That is, the bond is not adjusted to fair value at each interest payment date, just at the reporting date.) S. Show how the bond would be presented on the statement of financial position at the end of 20x5 and 20X6, if it were (a) AC and (b) FVTPLStep by Step Solution
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