Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying amount of the bonds on January 1, 2021, is P4,760,000. The bonds mature on January 1, 2024, and pay interest annually on December 31. The entity sold 1,500 bonds on December 31, 2021, for P1,920,000 after the interest has been received. How much is the gain on sale on December 31, 2021?

Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying amount of the bonds on January 1, 2021, is P4,760,000. The bonds mature on January 1, 2024, and pay interest annually on December 31. The entity sold 1,500 bonds on December 31, 2021, for P1,920,000 after the interest has been received. How much is the gain on sale on December 31, 2021?

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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