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PROBLEM 4: MULTIPLE CHO Fact pattern for the next six questions: On Jan. 1, 20x1, Golf Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal is due on Jan. 1, 20x4 but interest is due annually. The effective interest rate is 12%. In 20x2, Golf Co changed its business model for managing financial assets. Golf Co only reports annually, every Dec. 31. The quoted prices are 103 on Dec. 31, 20x2 and 104 on Jan. 1, 20x3. 1. The bonds are reclassified from amortized cost to FVPL. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 15,714 in P/L d. 57,857 in OCI 2. The bonds are reclassified from FVPL to amortized cost. What is the amount of premium or discount to be amortized over 615 the remaining life of the bonds subsequent to reclassification date? a. 40,000 premium b. 40,000 discount the c. 57,857 premium d. 57,857 discount 3 The bonds are reclassified from amortized cost to FVOCI. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 57,857 in OCI d. 0 4. The bonds are reclassified from FVOCI to amortized cost. How much is debited to the amortized cost asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000 S. The bonds are reclassified from FVPL to FVOCI. How much is debited to the FVOCI asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000

PROBLEM 4: MULTIPLE CHO Fact pattern for the next six questions: On Jan. 1, 20x1, Golf Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal is due on Jan. 1, 20x4 but interest is due annually. The effective interest rate is 12%. In 20x2, Golf Co changed its business model for managing financial assets. Golf Co only reports annually, every Dec. 31. The quoted prices are 103 on Dec. 31, 20x2 and 104 on Jan. 1, 20x3. 1. The bonds are reclassified from amortized cost to FVPL. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 15,714 in P/L d. 57,857 in OCI 2. The bonds are reclassified from FVPL to amortized cost. What is the amount of premium or discount to be amortized over 615 the remaining life of the bonds subsequent to reclassification date? a. 40,000 premium b. 40,000 discount the c. 57,857 premium d. 57,857 discount 3 The bonds are reclassified from amortized cost to FVOCI. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 57,857 in OCI d. 0 4. The bonds are reclassified from FVOCI to amortized cost. How much is debited to the amortized cost asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000 S. The bonds are reclassified from FVPL to FVOCI. How much is debited to the FVOCI asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000

Intermediate Accounting: Reporting And Analysis
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 14C
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PROBLEM 4: MULTIPLE CHOICE- COMIVinTIUNAL Fact pattern for the next six questions: On Jan. 1, 20x1, Golf Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal is due on Jan. 1, 20x4 but interest is due annually. The effective interest rate is 12%. In 20x2, Golf Co. changed its business model for managing financial assets. Golf Co. only reports annually, every Dec. 31. The quoted prices are 103 on Dec. 31, 20x2 and 104 on Jan. 1, 20x3. 1. The bonds are reclassified from amortized cost to FVPL. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 15,714 in P/L d. 57,857 in OCI 2. The bonds are reclassified from FVPL to amortized cost. What is the amount of premium or discount to be amortized over 615 the remaining life of the bonds reclassification date? a. 40,000 premium b. 40,000 discount subsequent to the c. 57,857 premium d. 57,857 discount 3 The bonds are reclassified from amortized cost to FVOCI. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 57,857 in OCI d. 0 4. The bonds are reclassified from FVOCI to amortized cost. How much is debited to the amortized cost asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000 . The bonds are reclassified from FVPL to FVOCI, How much is debited to the FVOCI asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000 TUDI How much is
Transcribed Image Text:PROBLEM 4: MULTIPLE CHOICE- COMIVinTIUNAL Fact pattern for the next six questions: On Jan. 1, 20x1, Golf Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal is due on Jan. 1, 20x4 but interest is due annually. The effective interest rate is 12%. In 20x2, Golf Co. changed its business model for managing financial assets. Golf Co. only reports annually, every Dec. 31. The quoted prices are 103 on Dec. 31, 20x2 and 104 on Jan. 1, 20x3. 1. The bonds are reclassified from amortized cost to FVPL. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 15,714 in P/L d. 57,857 in OCI 2. The bonds are reclassified from FVPL to amortized cost. What is the amount of premium or discount to be amortized over 615 the remaining life of the bonds reclassification date? a. 40,000 premium b. 40,000 discount subsequent to the c. 57,857 premium d. 57,857 discount 3 The bonds are reclassified from amortized cost to FVOCI. How much is the gain (loss) on reclassification and where is that amount presented? a. 57,857 in P/L b. (43,292) in OCI c. 57,857 in OCI d. 0 4. The bonds are reclassified from FVOCI to amortized cost. How much is debited to the amortized cost asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000 . The bonds are reclassified from FVPL to FVOCI, How much is debited to the FVOCI asset on reclassification date? a. 982,143 b. 992,667 c. 1,000,000 d. 1,040,000 TUDI How much is
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