Soledad Company

Required1 8% 10%
Date Interest received Interest income Discount amortization Carrying amount
1/1/2020
12/31/2020 300,000 272,400 27,600
12/31/2021 300,000 270,192 29,808

Required2
Fair value - January 1, 2022 2,845,000
Carrying amount per table January 1, 2022 -3,347,592
Loss on reclassification -502,592
 Required3 Debit Credit
Carrying amount 2020
3,405,000 Jan-01 Investment in bonds 3,405,000
3,377,400 Cash 3,405,000
3,347,592
Dec-31 Cash 300,000
Interest income 300,000

31 Interest income 27,600

Investment in bonds 27,600

2021
Dec-31 Cash 300,000
Interest income 300,000

31 Interest income 29,808

Investment in bonds 29,808

2022
Jan-01 Loss on reclassification 502,592
Investment in bonds 502,592

1 Financial asset-FVPL 2,845,000

Investment in bonds 2,845,000

Dec-31 Cash 300,000

Interest income 300,000