On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The bonds had a face amount of P6,000,000 and were issued to yield 12%. Interest is payable on January 1 and July 1. At year end, the company adopted the fair value model on its financial liabilities and determined that the fair value of the bond at that time was P5,750,000. On December 31, 2022, the company recognized an unrealized gain on financial liability at FVTPL of P250,000. How much is the carrying amount of the bond on the company's financial statements?
On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The bonds had a face amount of P6,000,000 and were issued to yield 12%. Interest is payable on January 1 and July 1. At year end, the company adopted the fair value model on its financial liabilities and determined that the fair value of the bond at that time was P5,750,000. On December 31, 2022, the company recognized an unrealized gain on financial liability at FVTPL of P250,000. How much is the carrying amount of the bond on the company's financial statements?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The bonds had a face amount of P6,000,000 and were issued to yield 12%. Interest is payable on January 1 and July 1. At year end, the company adopted the fair value model on its financial liabilities and determined that the fair value of the bond at that time was P5,750,000. On December 31, 2022, the company recognized an unrealized gain on financial liability at FVTPL of P250,000.
How much is the carrying amount of the bond on the company's financial statements?
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