1 a.

) FAAC
Cash
To record the acquisition of the investment at FAAC

b.) Interest receivable

Interest Income
To record the accrual of interest

Date Interest Collection Interest Income Amortization

1/1/2019
12/31/2019 80,000.00 92,416.40 12,416.40
12/31/2020 80,000.00 93,658.04 13,658.04
12/31/2021 80,000.00 95,023.84 15,023.84
12/31/2022 80,000.00 96,526.23 16,526.23
12/31/2023 80,000.00 98,211.49 18,211.49

c.) FAAC
Interest Income
To record the amortization of discount

d.) No entry

e.) REFER TO AMORTIZATION TABLE

f.) Amortization of discount

FAAC
Interest Income
To record the amortization of discount

Quoted Price as of 12/31/20 (1,000,000 * 99%)

Carrying amount as of 12/31/20 (Refer to amortization table)
Gain on sale of FAAC

Cash
FAAC
Interest income
Gain on sale of FAAC
To record the entry for the disposal transaction
2 a.) FVTPL
Commission expense
Cash
To record the acquisition of the investment at FAAC

b.) Interest receivable

Interest Income
To record the accrual of interest

c.) No entry

d.) Quoted Price as of 12/31/19 (1,000,000 * 98%)

Carrying amount as of 12/31/19
Unrealized gain - P&L

FVTPL
Unrealized gain - P&L
To record the fair value adjustment

e.) Carrying amount of the investment as of 12/31/19

f.) Quoted Price as of 12/31/20 (1,000,000 * 99%)

Carrying amount as of 12/31/20
Gain on sale of FVTPL

Cash
FVTPL
Interest income
Gain on sale of FAAC
To record the entry for the disposal transaction

3 a.) FVTOCI
Cash
To record the acquisition of the investment at FAAC

b.) Interest receivable

Interest Income
To record the accrual of interest
 Date Interest Collection Interest Income Amortization

1/1/2019
12/31/2019 80,000.00 92,416.40 12,416.40
12/31/2020 80,000.00 93,658.04 13,658.04
12/31/2021 80,000.00 95,023.84 15,023.84
12/31/2022 80,000.00 96,526.23 16,526.23
12/31/2023 80,000.00 98,211.49 18,211.49

c.) FVTOCI
Interest Income
To record the amortization of discount

d.) Quoted price as of 12/31/19 (1,000,000 * 98%)

Carrying amount as of 12/31/19 (Refer to amortization table)
Unrealized gain- OCI

FVTOCI
Unrealized gain- OCI
To record the fair value adjustment

e.) Carrying amount of the investment as of 12/31/19

f.) Amortization of discount

FVTOCI
Interest Income
To record the amortization of discount

Quoted Price as of 12/31/20 (1,000,000 * 99%)

Carrying amount as of 12/31/20 (980,000 + 13,658.04)
Unrealized gain(loss) - OCI

Unrealized Loss - OCI

FVTOCI
To record the fair value adjustment

Fair Value adjustment

Quoted Price as of 12/31/20 (1,000,000 * 99%)
Carrying amount as of 12/31/20
Gain on Sale of FVTOCI

Cash
Unrealized gain - OCI
FVTOCI
Interest income
Gain on sale of FAAC
Unrealized loss - OCI
To record the entry for the disposal transaction
 DEBIT CREDIT
924,164.00
924,164.00

80,000.00
80,000.00

Present Value

924,164.00
936,580.40
950,238.44
965,262.28
981,788.51
1,000,000.00

DEBIT CREDIT

12,416.40
12,416.40

936,580.40

13,658.04
13,658.04

990,000.00
950,238.44
39,761.56

1,070,000.00
950,238.44
80,000.00
39,761.56
DEBIT CREDIT
874,164.00
50,000.00
924,164.00

80,000.00
80,000.00

980,000.00
874,164.00
105,836.00

105,836.00
105,836.00

980,000.00

990,000.00
980,000.00
10,000.00

1,070,000.00
980,000.00
80,000.00
10,000.00

DEBIT CREDIT

924,164.00
924,164.00

80,000.00
80,000.00
Present Value

924,164.00
936,580.40
950,238.44
965,262.28
981,788.51
1,000,000.00

DEBIT CREDIT
12,416.40
12,416.40

980,000.00
936,580.40
43,419.60

43,419.60
43,419.60

980,000.00

13,658.04
13,658.04

990,000.00
993,658.04
(3,658.04)

3,658.04
3,658.04

990,000.00
950,238.44
39,761.56

1,070,000.00
43,419.60
990,000.00
80,000.00
39,761.56
3,658.04