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Provide an analysis using the cpa

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Question - At the start of the year, the company used excess operating funds to purchase a corporate bond for a publicly traded company, TMC. The bond has an attractive coupon rate of 5%. Management prefers to show a stable net income and a strong financial position to its banker. The bond was purchased at its par value of $100,000 plus $10,000 in brokerage fees. Interest was received in the year and the bond is now trading at $125,000. When the bond matures in 3 years, the company will re-invest the funds in another corporate bond.

Assume the company follows IFRS. Provide an analysis using the CPA Way as illustrated in class: Provide issue, a GAAP supported/ case specific analysis, recommendation, and correcting JE, if any, that is needed. Show all calculations in proper format.

Reference no: EM133153159

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