Storoshenko Inc. previously sold $1,000,000 in convertible bonds for $1,050,000. At time of issuance, the fair value of the equivalent non-convertible bond was $1,000,000. Interest on the bonds was last paid on August 31, 2021. On September 1, 2021, Storoshenko Inc. repurchased 100% of the outstanding bonds on the open market. 

Required: 

Prepare the journal entries to record the derecognition of the bonds in each of the following independent scenarios: 

Storoshenko Inc. reports its financial results in accordance with IFRS. 

a. Storoshenko Inc. paid $1,020,000 to repurchase the bonds. The fair value of a similar bond without the conversion option at the time of repurchase was estimated to be $980,000. 

b. Storoshenko Inc. paid $1,080,000 to repurchase the bonds. The fair value of a similar bond without the conversion option at the time of repurchase was estimated to be $1,005,000. 

Storoshenko Inc. reports its financial results in accordance with ASPE and used the zero common equity method to initially measure the convertible bond components. 

c. Storoshenko Inc. paid $1,020,000 to repurchase the bonds. The amortized cost (book value) of the debt at the time of repurchase was $1,025,000. 

d. Storoshenko Inc. paid $1,080,000 to repurchase the bonds. The amortized cost (book value) of the debt at the time of repurchase was $1,025,000.