On January 1, 2022, Kristine Company purchased 12% bonds with face amount of P5,000,000 for P5,500,000 including transaction cost of P100,000. The bonds provide an effective yield of 10%. The bonds are dated January 1, 2022, mature on January 1, 2027 and pay interest annually on December 31 of each year. The bonds are quoted at 115 on December 31, 2022. The entity has irrevocably elected to use the fair value option. 1. What amount of gain from change in fair value should be reported for 2022? A. 750,000 B. 250,000 C. 350,000 D. Zero
On January 1, 2022, Kristine Company purchased 12% bonds with face amount of P5,000,000 for P5,500,000 including transaction cost of P100,000. The bonds provide an effective yield of 10%. The bonds are dated January 1, 2022, mature on January 1, 2027 and pay interest annually on December 31 of each year. The bonds are quoted at 115 on December 31, 2022. The entity has irrevocably elected to use the fair value option. 1. What amount of gain from change in fair value should be reported for 2022? A. 750,000 B. 250,000 C. 350,000 D. Zero
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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