On January 1, 2018, Coconut Finance paid $342,109.40 for 12% bonds of X Ltd. with a maturity value of $318,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2018, mature on January 1, 2024, and pay interest each December 31.

Riverbed acquired the bond investment as part of its portfolio of trading securities and it accounts for the bonds at FV-NI, following IFRS. At December 31, 2018, Coconut Finance's year end, the bonds had a fair value of $339,900.00.

In 2019, the economic outlook related to X Ltd.’s primary had a major downturn, so that X Ltd.'s debt was downgraded. By the end of 2019, the bonds were priced at 85.5, and at December 31, 2020, they were selling in the market at 87. Conditions reversed in 2021 and the outlook for X Ltd. significantly improved, leaving its bonds with a fair value of 99.5 at December 31, 2021.

Finish the bond amortization table for the four-year period ending December 31, 2021 and show your work.

date	cash received	interest income	preminum amortization	bond carrying amount
Jan 1, 2018	n/a	n/a	n/a	?
Dec 31, 2018	38160	?	?	?
Dec 31, 2019	38160	?	?	?
Dec 31, 2020	38160	?	?	?
Dec 31, 2021	38160	?	?	?

Answer rating: 100% (QA)

To complete the bond amortization table for the fouryear period ending December 31 2021 we need to calculate the interest income premium amortization and the bond carrying amount for each year The giv... View the full answer