On June 30, 2015, Pacman Ltd. purchased $1,000,000 of 10 year 4%
bonds and classified them as FVTPL. The market rate at time of
purchase was 5%. Interest is paid semi-annually on June 30 and
December 31. Pacman follows IFRS 9. On December 31,2015, the market
rate was 4.6%. On June 30, 2016, Pacman sold all the bonds for
$940,000 plus accrued interest.
a. Calculate the purchase price of the bonds.
b. Prepare a bond amortization table for the first...