On July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000 plus accrued interest to yield 10%. The bonds were designated as at fair value through profit or loss. The bonds mature on January 1, 2024 and pay interest annually on January 1. On December 31, 2020, the bonds had a fair value of P472,500. On February 14, 2021, COC sold the bonds for P500,000 plus accrued interest. What is the gain (loss) on the sale of the securities in 2021? Enclosed in parenthesis in case of los
On July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000 plus accrued interest to yield 10%. The bonds were designated as at fair value through profit or loss. The bonds mature on January 1, 2024 and pay interest annually on January 1. On December 31, 2020, the bonds had a fair value of P472,500. On February 14, 2021, COC sold the bonds for P500,000 plus accrued interest. What is the gain (loss) on the sale of the securities in 2021? Enclosed in parenthesis in case of los
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 July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000 plus accrued interest to yield 10%. The bonds were designated as at fair value through profit or loss. The bonds mature on January 1, 2024 and pay interest annually on January 1. On December 31, 2020, the bonds had a fair value of P472,500. On February 14, 2021, COC sold the bonds for P500,000 plus accrued interest.
What is the gain (loss) on the sale of the securities in 2021? Enclosed in parenthesis in case of loss
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