On January 1, 2021, Germany Company purchased 12% bonds with a face amount of P4,000,000 for P4,500,000. The bonds payable effective rate is 10%. The bonds are dated January 1, 2021, and pay interest annually on December 31 of each year. The bond's quoted price on December 31, 2021, is P115. The entity has irrevocable use of the fair value option. How much is the gain on change in fair value on December 31, 2021?
On January 1, 2021, Germany Company purchased 12% bonds with a face amount of P4,000,000 for P4,500,000. The bonds payable effective rate is 10%. The bonds are dated January 1, 2021, and pay interest annually on December 31 of each year. The bond's quoted price on December 31, 2021, is P115. The entity has irrevocable use of the fair value option. How much is the gain on change in fair value 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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On January 1, 2021, Germany Company purchased 12% bonds with a face amount of P4,000,000 for P4,500,000.
The bonds payable effective rate is 10%.
The bonds are dated January 1, 2021, and pay interest annually on December 31 of each year.
The
The entity has irrevocable use of the fair value option.
How much is the gain on change in fair value on December 31, 2021?
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