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What is the balance in the AOCI account

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Question - On January 1, 20X5, Hillside Inc., which reports its financial statements in accordance with IFRS, bought $3,750,000 of five-year, 8%, Straight Arrow bonds. The bonds pay interest annually on December 31. When Hillside bought the bonds, the market rate of interest was 7% and the company classified the bond investment as FVOCI upon inception.

Market value information on the bonds:

Date Market value

December 31, 20X5 $3,900,000

December 31, 20X6 3,800,000

December 31, 20X7 3,850,000

December 31, 20X8 3,650,000

December 31, 20X9 3,750,000

What is the balance in the AOCI account that is associated with these bonds at December 31, 20X6?

a) $22,980 CR

b) $48,412 DR

c) $71,391 DR

d) $94,371 DR

Reference no: EM132550684

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