Explanation Journal entries to record purchase of securities when bonds are classified as FVOCI: Date Account Debit ($) Credit ($) Nov.1, Year 1 Debt securities-FVOCI 10,000,000 Cash 10,000,000 (To record the purchase of securities) Table (1) Debt securities are investments, which as classified as assets and it increases with the purchase of $10,000,000. Increase in asset is debited, therefore, Debt securities are debited with $10,000,000. Cash is asset which is decreased with the payment for the investment. Decrease in asset is credited; therefore, cash is credited with $10,000,000. Journal entry to record Interest income: Date Account Debit ($) Credit ($) Dec.31, Year 1 Cash 500,000 Interest income 500,000 (To record Interest income) Table (2) Cash is asset which is increased with the receipt of dividend. Increase in asset is debited therefore; cash is debited with $500,000. Interest income is revenue and revenue is credited with its increment. Revenues are increased with the receipt of dividend therefore; Interest income is credited with $500,000. Journal entry to record fair value gain: Date Account Debit ($) Credit ($) Dec. 31, Year 1 Debt securities-FVOCI 1,000,000 Other comprehensive income 1,000,000 (To record the fair value gain in other comprehensive income) Table (3) Debt securities are assets, which is increased with the gain in fair value. Increase in asset is debited, therefore debt securities are debited with $15,000. Other comprehensive income is revenue that is credited when increased. Revenues are increase with the gain in fair value therefore other comprehensive income is credited with $15,000. Journal entry to record sales: Date Account Debit ($) Credit ($) Dec. 31, Year 1 Cash 11,000,000 Other comprehensive income 1,000,000 Debt securities 11,000,000 Realized gain on debt securities 1,000,000 (To record the sale of securities) Table (4) Debt securities are investments, which as classified as assets that are decreased with the sale. Decrease in asset is credited therefore; marketable securities are credited with $140,000. Cash is an asset that is debited when increased. Cash is increased because of sale therefore; cash is debited with $135,000. Other comprehensive income is revenue that is debited when decreased. Revenues are debited with the sale therefore; other comprehensive income is debited with $1,000,000...