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Apple Corp. had the following portfolio of financial instruments of the December 31, 2020. All securities were acquired at the beginning of 2020: Denomination/ Recorded Security Face Value Acquisition Cost Zulu shares 100,000 shares P5,250,000 Xray shares 40,000 shares 2,350,000 10%, Yankee bonds, 3 years P2,000,000 par 1,951,126 Audit Notes: · Zulu shares were acquired and were designated as financial asset at fair value through profit/losses. The shares were acquired at P52.50 per share which included a P5.50 per share transaction cost. Half of the Zulu shares were sold at P62.50 per share on July 1, 2021. • The Yankee bonds were acquired on January 1, 2020, when the prevailing market rate of interest was at 11%. Interest are collectible every December 31. Half of the Yankee bonds were sold on June 30, 2021 at P1.1M. • Xray shares were and were designated as financial asset at fair value through other comprehensive income/losses. The shares were acquired at P60 per share which included P2.50 per share transaction cost. 15,000 of these shares were sold on August 1, 2021 at P56 per share. · Additional information on the securities are as follows: Security Fair value Fair value Dec. 31, 2020 Dec. 31, 2021 Zulu shares P59/share P62/share Xray shares 57.50/share 64/share 10%, Yankee bonds, 3 years 8% yield: 14% yield: ? ? Assuming that the company's business model has an objective of holding debt securities to collect contractual cash flows and hold investment available for sale when opportunity arises. what is the realized gain on sale of the Yankee bonds in 2021?

Apple Corp. had the following portfolio of financial instruments of the December 31, 2020. All securities were acquired at the beginning of 2020: Denomination/ Recorded Security Face Value Acquisition Cost Zulu shares 100,000 shares P5,250,000 Xray shares 40,000 shares 2,350,000 10%, Yankee bonds, 3 years P2,000,000 par 1,951,126 Audit Notes: · Zulu shares were acquired and were designated as financial asset at fair value through profit/losses. The shares were acquired at P52.50 per share which included a P5.50 per share transaction cost. Half of the Zulu shares were sold at P62.50 per share on July 1, 2021. • The Yankee bonds were acquired on January 1, 2020, when the prevailing market rate of interest was at 11%. Interest are collectible every December 31. Half of the Yankee bonds were sold on June 30, 2021 at P1.1M. • Xray shares were and were designated as financial asset at fair value through other comprehensive income/losses. The shares were acquired at P60 per share which included P2.50 per share transaction cost. 15,000 of these shares were sold on August 1, 2021 at P56 per share. · Additional information on the securities are as follows: Security Fair value Fair value Dec. 31, 2020 Dec. 31, 2021 Zulu shares P59/share P62/share Xray shares 57.50/share 64/share 10%, Yankee bonds, 3 years 8% yield: 14% yield: ? ? Assuming that the company's business model has an objective of holding debt securities to collect contractual cash flows and hold investment available for sale when opportunity arises. what is the realized gain on sale of the Yankee bonds in 2021?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9P
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Assuming that the company’s business model has an objective of holding debt securities to collect contractual cash flows and hold investment available for sale when opportunity arises, what is the realized gain on sale of the Yankee bonds in 2021?

Apple Corp. had the following portfolio of financial instruments of the December 31, 2020. All securities were acquired at the beginning of 2020: Denomination/ Recorded Security Face Value Acquisition Cost Zulu shares 100,000 shares P5,250,000 Xray shares 40,000 shares 2,350,000 10%, Yankee bonds, 3 years P2,000,000 par 1,951,126 Audit Notes: - Zulu shares were acquired and were designated as financial asset at fair value through profit/losses. The shares were acquired at P52.50 per share which included a P5.50 per share transaction cost. Half of the Zulu shares were sold at P62.50 per share on July 1, 2021. - The Yankee bonds were acquired on January 1, 2020, when the prevailing market rate of interest was at 11%. Interest are collectible every December 31. Half of the Yankee bonds were sold on June 30, 2021 at P1.1M. - Xray shares were and were designated as financial asset at fair value through other comprehensive income/losses. The shares were acquired at P60 per share which included P2.50 per share transaction cost. 15,000 of these shares were sold on August 1, 2021 at P56 per share. · Additional information on the securities are as follows: Security Fair value Fair value Dec. 31, 2020 Dec. 31, 2021 Zulu shares P59/share P62/share Xray shares 57.50/share 64/share 10%, Yankee bonds, 3 years 8% yield: 14% yield: ? ? Assuming that the company's business model has an objective of holding debt securities to collect contractual cash flows and hold investment available for sale when opportunity arises, what is the realized gain on sale of the Yankee bonds in 2021?
Transcribed Image Text:Apple Corp. had the following portfolio of financial instruments of the December 31, 2020. All securities were acquired at the beginning of 2020: Denomination/ Recorded Security Face Value Acquisition Cost Zulu shares 100,000 shares P5,250,000 Xray shares 40,000 shares 2,350,000 10%, Yankee bonds, 3 years P2,000,000 par 1,951,126 Audit Notes: - Zulu shares were acquired and were designated as financial asset at fair value through profit/losses. The shares were acquired at P52.50 per share which included a P5.50 per share transaction cost. Half of the Zulu shares were sold at P62.50 per share on July 1, 2021. - The Yankee bonds were acquired on January 1, 2020, when the prevailing market rate of interest was at 11%. Interest are collectible every December 31. Half of the Yankee bonds were sold on June 30, 2021 at P1.1M. - Xray shares were and were designated as financial asset at fair value through other comprehensive income/losses. The shares were acquired at P60 per share which included P2.50 per share transaction cost. 15,000 of these shares were sold on August 1, 2021 at P56 per share. · Additional information on the securities are as follows: Security Fair value Fair value Dec. 31, 2020 Dec. 31, 2021 Zulu shares P59/share P62/share Xray shares 57.50/share 64/share 10%, Yankee bonds, 3 years 8% yield: 14% yield: ? ? Assuming that the company's business model has an objective of holding debt securities to collect contractual cash flows and hold investment available for sale when opportunity arises, what is the realized gain on sale of the Yankee bonds in 2021?
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