Question: Assume the same information as in IFRS17.12 except that Roosevelt has an active trading strategy for these bonds. The fair value of the bonds at

Assume the same information as in IFRS17.12 except that Roosevelt has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows.

2020.....................$534,200
2021.....................$515,000
2022.....................$513,000
2023.....................$517,000
2024.....................$500,000

Instructions

a. Prepare the journal entry at the date of the bond purchase.

b. Prepare the journal entries to record the interest revenue and recognition of fair value for 2020.

c. Prepare the journal entry to record the recognition of fair value for 2021.

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