Question 2

On January 1, 2020, Riverbed Corp. acquires $324,000 of Spider Products Inc. 8% bonds at a price of $300,247. The interest is payable each December 31, and the bonds mature on December 31, 2022. The investment will provide Riverbed Corp. with a 11% yield. Riverbed Corp. applies IFRS and accounts for this investment using the amortized cost model.

(a) Prepare a three-year bond amortization schedule. (Round answers to 0 decimal places, e.g. 5,275.) Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Interest Bond Discount Income Amortization Cash Received Carrying Amount of Bonds Date 01/01/20 $ 12/31/20 $ $ $ 12/31/21 12/31/22