On January 1,2017,a company pays $100,000 to purchase 100 Government of Canada bonds that have a maturity date of December 31,2021 and an interest rate of 5%.At December 31,2017,the bonds had a quoted price of $1,022 per bond.Assume that 20 of these bonds are sold on June 30,2018 for $1,100 per bond plus accrued interest.Determine the gain or loss that would be recorded in 2018 assuming:
a.Classified at fair value through profit or loss.
b.Classified at amortized cost.

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The Answer of On January 1,2017,a company pays $100,000 to purchase 100 Government of Canada bonds that have a maturity date of December 31,2021 and an interest rate of 5%.At December 31,2017,the bonds had a quoted price of $1,022 per bond.Assume that 20 of these bonds are sold on June 30,2018 for $1,100 per bond plus accrued interest.Determine the gain or loss that would be recorded in 2018 assuming:
a.Classified at fair value through profit or loss.
b.Classified at amortized cost.

On January 1,2017,a Company Pays $100,000 to Purchase 100 Government