1. On December 29, 20x1, an entity commits itself to purchase a financial asset for ₱10,000, which is its fair value on commitment date (trade date). Transaction costs are immaterial. On December 31, 20x1 and on January 4, 20x2 (settlement date) the fair values of the asset are ₱12,000 and ₱15,000, respectively. If the entity uses the settlement date accounting and that the investment is classified as held for trading, how much is the carrying amount of the investment in the December 31, 20x1 statement of financial position?
1. On December 29, 20x1, an entity commits itself to purchase a financial asset for ₱10,000, which is its fair value on commitment date (trade date). Transaction costs are immaterial. On December 31, 20x1 and on January 4, 20x2 (settlement date) the fair values of the asset are ₱12,000 and ₱15,000, respectively. If the entity uses the settlement date accounting and that the investment is classified as held for trading, how much is the carrying amount of the investment in the December 31, 20x1
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2. On January 1, 20x1, Dagul Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on January 1, 20x4 but interest is due annually starting December 31, 20x1. The yield rate on the bonds is 12%. On July, 1 20x1, Dagul Co. changed its business model. It was ascertained that the investment in bonds at amortized cost should be reclassified to held for trading securities on reclassification date. The bonds were quoted at 102, 103 and 104 on July 1, 20x1, December 31, 20x1 and January 1, 20x2, respectively. How much is the gain (loss) on reclassification on January 1, 20x2?
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3. On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities to subscribe to new shares at ₱60 per share for every 4 rights held. Prior to issuance of stock rights, the shares were selling at ₱80 per share. How much is the initial carrying amount of the stock rights?
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