(Answered) On january 1 year 1 bb company purchased 300000 6 5-year

Accounting

On January 1 Year 1, BB company purchased $300,000, 6%, 5-year bonds. Market yieldon this date was 5%. Interest is paid on December 31 each year. The fair value of thebonds was $309,000 and $298,000 at the end of years 1 and 2, respectively.On December 31, year 2, BB sold the investment for $295,000. Prepare the journal entries for years 1 and 2 assuming classified as: a.) Amort. Cost Method .... b.) using FVOCI.

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