On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000 for P 3,756,000. The effective interest rate at that time is 10%. The bonds are dated January 1,2019 and mature on December 31,2028. The bonds pay interest annually on December 31. Market quotation for the debt investment at December 31,2019 is 99. Assuming that the debt investment is designated as at fair value through other comprehensive income. How much is the unrealized gain (loss) reported in other comprehensive income for the year 2019? P 40,000 P 188,400 P 204,000 P 171,240
On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000 for P 3,756,000. The effective interest rate at that time is 10%. The bonds are dated January 1,2019 and mature on December 31,2028. The bonds pay interest annually on December 31. Market quotation for the debt investment at December 31,2019 is 99. Assuming that the debt investment is designated as at fair value through other comprehensive income. How much is the unrealized gain (loss) reported in other comprehensive income for the year 2019? P 40,000 P 188,400 P 204,000 P 171,240
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 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000 for P 3,756,000. The effective interest rate at that time is 10%. The bonds are dated January 1,2019 and mature on December 31,2028. The bonds pay interest annually on December 31. Market quotation for the debt investment at December 31,2019 is 99.
Assuming that the debt investment is designated as at fair value through other comprehensive income. How much is the unrealized gain (loss) reported in other comprehensive income for the year 2019?
Assuming that the debt investment is designated as at fair value through other comprehensive income. How much is the unrealized gain (loss) reported in other comprehensive income for the year 2019?
P 40,000
P 188,400
P 204,000
P 171,240
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