Question
Please help me with the below question, I am very confused about the working and i cant get the answer, I would be really grateful
Please help me with the below question, I am very confused about the working and i cant get the answer, I would be really grateful if you could show me the step by step working, thank you in advance for your assistance. This is a MCQ.
AAA Pte Ltd purchased several investments during 20X1, its first year of operations. The following information are provided. Note that the fluctuations in the fair values are transitory. It purchased BBB Ltd bonds at $380,000 on 1 January 20X1. These bonds are 4-year bonds with a coupon rate of 10% and par value of $400,000. BBB Ltd will make coupon payments annually on 31 December with the first coupon payment made on 31 December 20X1. As at the end of 20X1 and 20X2, its amortised cost is $384,194 and $388,875 and its fair value is $385,000 and $400,000 respectively. AAA Pte Ltd also purchased CCC Ltd shares. The cost of these shares was at $137,900. The fair values as at the end of 20X1 and 20X2 are $139,000 and $175,000. AAA Pte Ltd also purchased DDD Ltd shares. The cost of these shares was at $125,000. The fair values as at the end of 20X1 and 20X2 are $130,500 and $150,400. AAA Pte Ltd classifies its investments in BBB Ltd as measured at amortised cost, those in CCC Ltd as measured at fair value through profit or loss and those in DDD Ltd as measured at fair value through other comprehensive income. Determine the amount of total investment reflected on AAA Pte Ltds statement of financial position as at the end of 20X2.
(a) $654,500.
(b) $725,400.
(c) $653,694.
(d) $714,275.
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