Current Attempt in Progress On January 1, 2018, Blue Spruce Ltd, paid $245,285.99 for 12% bonds of Variation Ltd. with a maturity value of $728.000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2018, mature on January 1, 2024, and pay interest each December 31. Blue Spruce acquired the band investment as part of its portfolio of trading securities and it accounts for the bonds at FV-NI, following IFRS. At December 31, 2018, Blue Spruce's year end, the bonds had a fair value of $243,700.00 During 2019. the economic outlook related to Variation Ltd's primary business took a major downturn, so that Variation's debt was duwrigraded. By the end of 2019, the bonds were priced at 85.5, and at December 31, 2020, they were selling in the market at 87. Conditions reversed in 2021 and the outlook for Variation Ltd.significantly improved, leaving its bonds with a fair value of 99.5 at December 31, 2021 Prepare a bond amortization table for the four-year period ending December 31, 2021. (Round answers to 2 decimal places, eg. 52.75) Cash Recelved Bond Amortization Table Interest Income Premium Amortization Cart Amount Date 01/01/18 12/31/18 $ 12/31/19 12/31/20 12/31/21 e Textbook and Media On January 1, 2018, Blue Spruce Ltd. paid $245,285.99 for 12% bonds of Variation Ltd. with a maturity value of $228,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2016, mature on January 1, 2024, and pay interest each December 31. Blue Spruce acquired the bond investment as part of its portfolio of trading securities and it accounts for the bondsat FV-NI, following IFRS, At December 31, 2018, Blue Spruce's year end, the bonds had a fair value of $243,700.00 During 2019, the economic outlook related to Variation Ltd's primary business took a major downturn, so that Variationis debt was downgraded. By the end of 2019, the bonds were priced at 85.5, and at December 31, 2020, they were selling in the market at 87. Conditions reversed in 2021 and the outlook for Variation Ltd. significantly improved, leaving its bonds with a fair value of 995 at December 31, 2021. Prepare a bond amortization table for the four year period ending December 31, 2021. (Round answers to 2 decimal places, es 52.75) Cash Received Bond Amortization Table Interest Income Premium Amortization Carrying Amount of Bonds eTextbook and Media e Textbook and Media List of Accounts Identify the impairment loss model applied in the above situation Incurred Loss Model Fair Value Impairment Model List of Accounts Prepare the entries to record Blue Spruce's purchase of the bonds on January 1, 2018, the recognition of interest income and interest received on December 31, 2018, and the fair value adjustment required at December 31, 2018. (Credit account titles automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts. Round answers to 2 decimal places, eg 52.75.) Date Debit Creclit Account Titles and Explanation Jan. 1, Prepare the entries to record Blue Spruce's purchase of the bonds on January 1, 2018, the recognition of interest income and interest received on December 31, 2018, and the fair value adjustment required at December 31, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to 2 decimal places, eg. 52.75.) Account Titles and Explanation Debit Credit Date Jan. 1, 2018 Dec 31, 2018 (To record collection of interest) To record fair value adjustment) textbook and Media List of Accounts Assistance Used List of Accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividends Receivable Dividend Revenue FV-Nl Investments FV-OCI Investments Gain on Disposal of Investments in Associate Gain on Disposal of Investments - Cost/Amortized Cost Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments - Cost/Amortized Cost Loss on Disposal of Investments - FV-NI Loss on Disposal of Investments - FV-OCI Loss on Impairment No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI Prepare all entries required for 2019, including recognition of the impairment in value if necessary, and for 2020. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to 2 decimal places, eg. 52.75.) Account Titles and Explanation Debit Credit Date Dec 31, 2019 (To record collection of interest) (To record fair value adjustment) Dec. 31, 2020 (To record interest income) (To record fair value adjustment) e Textbook and Media List of Accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividends Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Disposal of Investments in Associate Gain on Disposal of Investments - Cost/Amortized Cost Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments - Cost/Amortized Cost Loss on Disposal of Investments - FV-NI Loss on Disposal of Investments - FV-OCI Loss on Impairment No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI Prepare all entries required for 2021, including recognition of the recovery of the impairment in value, if necessary. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to 2 decimal places, eg. 52.75.) Account Titles and Explanation Debit Credit Date Dec. 31, 2021 (To record collection of interest) (To record fair value adjustment) e Textbook and Media List of Accounts Question 3 of 8 Account Titles and Explanation Date Dec. 31, 2021 (To record collection of interest) (To record fair value adjustment) e Textbook and Media List of Accounts Identify the impairment loss model applied in the above situation. Fair Value Impairment Model Incurred Loss Model List of Accounts Current Attempt in Progress On January 1, 2018, Blue Spruce Ltd, paid $245,285.99 for 12% bonds of Variation Ltd. with a maturity value of $728.000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2018, mature on January 1, 2024, and pay interest each December 31. Blue Spruce acquired the band investment as part of its portfolio of trading securities and it accounts for the bonds at FV-NI, following IFRS. At December 31, 2018, Blue Spruce's year end, the bonds had a fair value of $243,700.00 During 2019. the economic outlook related to Variation Ltd's primary business took a major downturn, so that Variation's debt was duwrigraded. By the end of 2019, the bonds were priced at 85.5, and at December 31, 2020, they were selling in the market at 87. Conditions reversed in 2021 and the outlook for Variation Ltd.significantly improved, leaving its bonds with a fair value of 99.5 at December 31, 2021 Prepare a bond amortization table for the four-year period ending December 31, 2021. (Round answers to 2 decimal places, eg. 52.75) Cash Recelved Bond Amortization Table Interest Income Premium Amortization Cart Amount Date 01/01/18 12/31/18 $ 12/31/19 12/31/20 12/31/21 e Textbook and Media On January 1, 2018, Blue Spruce Ltd. paid $245,285.99 for 12% bonds of Variation Ltd. with a maturity value of $228,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2016, mature on January 1, 2024, and pay interest each December 31. Blue Spruce acquired the bond investment as part of its portfolio of trading securities and it accounts for the bondsat FV-NI, following IFRS, At December 31, 2018, Blue Spruce's year end, the bonds had a fair value of $243,700.00 During 2019, the economic outlook related to Variation Ltd's primary business took a major downturn, so that Variationis debt was downgraded. By the end of 2019, the bonds were priced at 85.5, and at December 31, 2020, they were selling in the market at 87. Conditions reversed in 2021 and the outlook for Variation Ltd. significantly improved, leaving its bonds with a fair value of 995 at December 31, 2021. Prepare a bond amortization table for the four year period ending December 31, 2021. (Round answers to 2 decimal places, es 52.75) Cash Received Bond Amortization Table Interest Income Premium Amortization Carrying Amount of Bonds eTextbook and Media e Textbook and Media List of Accounts Identify the impairment loss model applied in the above situation Incurred Loss Model Fair Value Impairment Model List of Accounts Prepare the entries to record Blue Spruce's purchase of the bonds on January 1, 2018, the recognition of interest income and interest received on December 31, 2018, and the fair value adjustment required at December 31, 2018. (Credit account titles automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts. Round answers to 2 decimal places, eg 52.75.) Date Debit Creclit Account Titles and Explanation Jan. 1, Prepare the entries to record Blue Spruce's purchase of the bonds on January 1, 2018, the recognition of interest income and interest received on December 31, 2018, and the fair value adjustment required at December 31, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to 2 decimal places, eg. 52.75.) Account Titles and Explanation Debit Credit Date Jan. 1, 2018 Dec 31, 2018 (To record collection of interest) To record fair value adjustment) textbook and Media List of Accounts Assistance Used List of Accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividends Receivable Dividend Revenue FV-Nl Investments FV-OCI Investments Gain on Disposal of Investments in Associate Gain on Disposal of Investments - Cost/Amortized Cost Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments - Cost/Amortized Cost Loss on Disposal of Investments - FV-NI Loss on Disposal of Investments - FV-OCI Loss on Impairment No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI Prepare all entries required for 2019, including recognition of the impairment in value if necessary, and for 2020. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to 2 decimal places, eg. 52.75.) Account Titles and Explanation Debit Credit Date Dec 31, 2019 (To record collection of interest) (To record fair value adjustment) Dec. 31, 2020 (To record interest income) (To record fair value adjustment) e Textbook and Media List of Accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividends Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Disposal of Investments in Associate Gain on Disposal of Investments - Cost/Amortized Cost Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments - Cost/Amortized Cost Loss on Disposal of Investments - FV-NI Loss on Disposal of Investments - FV-OCI Loss on Impairment No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI Prepare all entries required for 2021, including recognition of the recovery of the impairment in value, if necessary. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to 2 decimal places, eg. 52.75.) Account Titles and Explanation Debit Credit Date Dec. 31, 2021 (To record collection of interest) (To record fair value adjustment) e Textbook and Media List of Accounts Question 3 of 8 Account Titles and Explanation Date Dec. 31, 2021 (To record collection of interest) (To record fair value adjustment) e Textbook and Media List of Accounts Identify the impairment loss model applied in the above situation. Fair Value Impairment Model Incurred Loss Model List of Accounts