anuary 1, 2026 and were purchased for P5,550,000 to yeild 11%. The entity classified the bondss as held for trading and interest is payable annually every December 31. The entity provided the following information about fair value of the b
On January 1, 2021, STUDY HARDER Company purchased 9% bonds with face amount of P6,000,000. The bonds mature on January 1, 2026 and were purchased for P5,550,000 to yeild 11%. The entity classified the bondss as held for trading and interest is payable annually every December 31. The entity provided the following information about fair value of the bonds and effective rate:
>December 31, 2021; Fair value of P5,450,000; Effective rate of 12%
> December 31,2022; Fair value of P6,150,000; Effective rate of 8%
On December 31, 2022, the entity changed the business mmodel for this investment to collect contractual cash flows composed of principal and interest. On January 1, 2023, the fair
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