1.

Date Interest received Interest income Discount Carrying amount

amortization
1/1/2019 4 562 000
12/31/2019 400 000 456 200 56 200 4 618 200
12/31/2020 400 000 461 820 61 820 4 680 020
12/31/2021 400 000 468 002 68 002 4 748 022

2.

Investment on bonds 946 000

Cash 946 000
3.

Date Interest Interest income Discount Carrying amount

received amortization
1/1/2019 4 206 000
12/31/2019 400 000 336 480 63 520 4 142 480
12/31/2020 400 000 331 398 68 602 4 073 878
12/31/2021 400 000 326 122 73 878 4 000 000

Market value 12/31/2019 (4m x 95%) 3 800 000

Carrying amount 12/31/2019 4 142 480
Unrealized loss-2019 (342 480)

Market value /12/31/2020 (4m x 90%) 3 600 000

Carrying amount 12/31/2020 4 073 878
Cumulative unrealized loss (473 878)
Unrealized loss -2019 (342 480)
Increase in unrealized loss – 2020 131 398

2019

Jan 1 Financial Asset – FVOCI 4 206 000

Cash 4 206 000

Dec. 31 Cash (4m x 10%) 400 000

Interest Income 400 000

Interest income 63 520

Financial asset – FVOCI 63 520

Unrealized loss – OCI 342 480

Financial asset 342 480
2020

Dec.31 Cash 400 000

Interest Income 400 000

Interest income 68 602

Financial asset – OCI 68 602

Unrealized loss – OCI 131 398

Financial asset 131 398

4. 5 000 000 x 12% = 600 000

5.

Date Interest Interest income Discount Carrying amount

received amortization
1/1/2019 5 380 000
12/31/2019 600 000 538 000 62 000 5 318 000
12/31/2020 600 000 531 800 68 200 5 249 800
12/31/2021 600 000 529 980 75 020 5 174 780
12/31/2022 600 000 517 478 82 522 5 092 258

Carrying amount – 12/31/2021 5 174 780

Face amount 5 000 000
Unamortized cost 174 780