On January 1, 2020, a company pays $100,000 to purchase 100 Government of Canada bonds that have a maturity date of December 31, 2024 and an interest rate of 5%. At December 31, 2020, the bonds had a quoted price of $1,022 per bond. Assume that 45 of these bonds are sold on June 30, 2021 for $1,100 per bond plus accrued interest. Determine the gain or loss that would be recorded in 2021 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, 2020, a company pays $100,000 to purchase 100 Government of Canada bonds that have a maturity date of December 31, 2024 and an interest rate of 5%. At December 31, 2020, the bonds had a quoted price of $1,022 per bond. Assume that 45 of these bonds are sold on June 30, 2021 for $1,100 per bond plus accrued interest. Determine the gain or loss that would be recorded in 2021 assuming:
a. Classified at fair value through profit or loss
b. Classified at amortized cost

On January 1, 2020, a Company Pays $100,000 to Purchase