On January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063, 394, a price that yields 10%. The bonds mature on December 31, 2022. On April 1, 2021, to pay the maturing obligation, Odeng sold P600,000 face value bonds at 101 plus accrued interest. The market value of the bonds on December 31, 2019, 2020 and 2021, respectively are: 108, 106 and 104. If the entity classified the investment at fair value through profit or loss, how much is the bond investment on December 31, 2020? * G O P1,000,000 O P1,018,177 O P1,060,000 O P1,034,706

On January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063, 394, a price that yields 10%. The bonds mature on December 31, 2022. On April 1, 2021, to pay the maturing obligation, Odeng sold P600,000 face value bonds at 101 plus accrued interest. The market value of the bonds on December 31, 2019, 2020 and 2021, respectively are: 108, 106 and 104. If the entity classified the investment at fair value through profit or loss, how much is the bond investment on December 31, 2020? * G O P1,000,000 O P1,018,177 O P1,060,000 O P1,034,706

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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