Question 7 (15 Marks) Stone Inc invested in three-year bonds 9% bonds, with a total face value of $300,000 for $278,384. The bonds will yield a 12 % return. Interest is payable annually (a) Assume that Stone uses IFRS. Prepare the journal entries to record the initial investment, receipt of interest, and recognition of interest income in cach of the three years, and the maturity of the bond at the end of the three years (Hint: You do not have to prepare an amortization schedule to answer this question, but it may be helpful for you in formulating your response) (b) Assume that Stone uses ASPE and has chosen to use the straight-line method of amortization, determine the amount of the discount that is amortized each year (c) Under which method (IFRS or ASPE) would more interest income be recorded? Question 8 (12 Marks) On February 1, 2017 Crow Inc invested in a commercial complex for $2,550,000, paid in cash. The purchase price should be allocated 75% to the building and 25% to the land. On February 1". 2017 the estimated useful life of the building was 30 ycars with a residual value of $650,000. Crow uses the straight-line method to account for the depreciation The fair value of the commercial complex was assessed by an independent appraiser on each of the following dates: December 31", 2017: $2,644,000 December 31, 2018: $2,510.000 December 31, 2019: $1,223,000 The complex qualifies as an investment property under LAS 40 Investment property. Crow has a December 31 year-end Required: 1. Prepare the journal entries required for 2017, 2018 and 2019, assuming that Crow uses the fair value model to all of its investment property 2. Prepare the journal entries required for 2017, 2018 and 2019, assuming that Crow uses the cost model to all of its investment property 10