Question 1 (18 marks, 36 minutes) Alpha Inc., a company following IFRS, has the following investments....

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Question 1 (18 marks, 36 minutes) Alpha Inc., a company following IFRS, has the following investments. Part (a) Theta Limited bonds On January 1, 2021, Alpha Inc. purchased 6% bonds of Theta Limited with maturity value of $500,000 for $489,611. i. The bonds pay interest annually every December 31, and would mature on December 31, 2025. The bonds were acquired to yield 6.5%. ii. The fair value of the bonds was $492,623 on December 31, 2021 and $495,126 on December 31, 2022. iii. Required: Prepare an effective interest amortization schedule for the bonds (4 marks) Assuming that Alpha accounts for its investment in Theta bonds under the amortized cost model, specify the interest income for the year ended December 31, 2022 and the amount at which the investment will be reported on the statement of financial position as at December 31, 2022. (2 marks) Assuming that Alpha accounts for its investment in Theta bonds under the FVOCI model, specify the amount that will be reported in OCI for the year ended December 31, 2022 (2 marks) Part (h) Question 1 (18 marks, 36 minutes) Alpha Inc., a company following IFRS, has the following investments. Part (a) Theta Limited bonds On January 1, 2021, Alpha Inc. purchased 6% bonds of Theta Limited with maturity value of $500,000 for $489,611. i. The bonds pay interest annually every December 31, and would mature on December 31, 2025. The bonds were acquired to yield 6.5%. ii. The fair value of the bonds was $492,623 on December 31, 2021 and $495,126 on December 31, 2022. iii. Required: Prepare an effective interest amortization schedule for the bonds (4 marks) Assuming that Alpha accounts for its investment in Theta bonds under the amortized cost model, specify the interest income for the year ended December 31, 2022 and the amount at which the investment will be reported on the statement of financial position as at December 31, 2022. (2 marks) Assuming that Alpha accounts for its investment in Theta bonds under the FVOCI model, specify the amount that will be reported in OCI for the year ended December 31, 2022 (2 marks) Part (h)