Co XYZ recognized issued compound financial instruments in accordance with IAS 32 Financial Instruments:

Presentation, and purchased investment property in accordance with IAS 40 Investment Property using the fair value model and elected to carry equity instruments at Fair Value through Other Comprehensive Income (FVOCI)

in accordance with IFRS 9 Financial Instruments.

Holding assumptions
(1) Maintains rebuttable presumption that fair value is recovered through sale.
(2) Does not maintain rebuttable presumption. Fair value is recovered through rental income.

Tax scenarios:

(1) Not taxable 

(2) Taxed during year of fair value gain or loss (3) Taxed during year of sale

Required
Prepare journal entries to record the deferred tax liability and/or current tax liability during 20x0 and 20x1 for each of the above three instruments under each holding assumption or tax scenario, where applicable.

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Compound financial instruments: Issue date.. Proceeds from issue of bonds.. Fair value of the bonds without the equity option. Principal amount.. 1 January 20x1 $12,000,000 $10,200,000 $11,000,000