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How much is the carrying amount/initial recognition of the bond for each of the below classification:

How much is the carrying amount/initial recognition of the bond for each of the below classification:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Beckham acquired a 2,000,000, 5 year bond, 10% bond for 2,169,329. Transaction cost is 4,500. The ongoing interest rate on the date of the acquisition of the bonds was 7.8859%. The fair value of the bond at the end of each year are listed below: Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 101 98 105
Transcribed Image Text:On January 1, 2020, Beckham acquired a 2,000,000, 5 year bond, 10% bond for 2,169,329. Transaction cost is 4,500. The ongoing interest rate on the date of the acquisition of the bonds was 7.8859%. The fair value of the bond at the end of each year are listed below: Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 101 98 105
How much is the carrying amount/initial recognition of the bond for each of the below classification: i.) FVPL II.) FVOCI iii.) Amortized Cost
Transcribed Image Text:How much is the carrying amount/initial recognition of the bond for each of the below classification: i.) FVPL II.) FVOCI iii.) Amortized Cost
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