Can I get accurate solutions to the following problems? (In good accounting form) Thank you....
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Can I get accurate solutions to the following problems? (In good accounting form) Thank you.
1. On May 10, 2019, GUAVA Company received a grant of 8,000,000 from the British Government for the construction of a laboratory and research facility with an estimated cost of 10,000,000 and a useful life of 5 years. The facility was completed in early 2020. How much should GUAVA Company include in its 2020 income statement as income from the government?
2. On January 1, 2019, LEMON Company purchased bonds with face amount of 6,000,000 for 6,309,000. The business model of the entity in managing the financial asset is to collect contractual cash flows that are solely payment of principal and interest and also to sell the bonds in the open market. The bonds mature on December 31, 2021 and pay 10% interest annually on December 31 each year with 8% effective yield. The bonds are quoted at 95 and 90 on December 31, 2019 and December 31, 2020, respectively. What amount of cumulative unrealized gain or loss should be reported in the statement of financial position on December 31, 2020?
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