Patton company purchased $600,000 of 10% bonds of scott co. on january 1, 2013, paying $564,150. the bonds mature january 1, 2023; interest is payable each july 1 and january 1. the discount of $35,850 provides an effective yield of 11%. patton company uses the effective-interest method and plans to hold these bonds to maturity. for the year ended december 31, 2013, patton company should report interest revenue from the scott co. bonds of:

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.