On January 1, 2019, Dumaguete Company purchased bonds with face amount of P4,000,000 for P4,206,000. The bonds were designated as at fair value through other comprehensive income. The bonds mature on December 31, 2021 and pay 10% interest annually on December 31 each year with 8% effective yield. The bonds are quoted 95 on December 31, 2019 and 90 on December 31, 2020. What amount of unrealized loss should be reported as component of other comprehensive income in 2019? A P342,480 B) P-0- C) P469,520 (D) P406,000

On January 1, 2019, Dumaguete Company purchased bonds with face amount of P4,000,000 for P4,206,000. The bonds were designated as at fair value through other comprehensive income. The bonds mature on December 31, 2021 and pay 10% interest annually on December 31 each year with 8% effective yield. The bonds are quoted 95 on December 31, 2019 and 90 on December 31, 2020. What amount of unrealized loss should be reported as component of other comprehensive income in 2019? A P342,480 B) P-0- C) P469,520 (D) P406,000

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 1MC

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