What classification, description and amount would reported

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Question - Pristine Resources Company, (PRC), a privately held company with widely traded bonds on the open market and with a December 31, year-end had the following items and issues pertaining to its 2020, year-end. Assume all amounts provided are material to the operations of PRC.

PRC issued on January 1, 2015, $10,000,000, 4%, interest paid semi-annually (June 30 & December 31), 20 year debenture bonds at a market yield of 5% (Bank of Canada rate at this time was 2.5%) and proceeded to account for these bonds at amortized cost. As at December 31, 2020, PRC elected to report these bonds a fair value when the market rate of interest was 6% (Bank of Canada rate at this time was 3%).

Required - What classification, description and amount would be reported on the properly classified liability section of the Statement of Financial Position as of December 31, 2020?

Reference no: EM132853050

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