What is the interest income for 2020? a. P280,000 b. P400,000 c.P248,080 d. P354,400 53. What is the interest income for 2021? a. P425,280 b. P418,800 c. P349,000 d. 244,300 54. What amount unrealized loss is included in profit or loss for 2020?
On January 1, 2020, Ivanananggal Company purchased 7% bonds with face amount of
P4,000,000. The bonds mature on January 1, 2025 and were purchased for P3,544,000 to
yield 10%.
The entity classified the bonds as held for trading and interest is payable annually every
December 31. On December 31, 2020, the fair value and effective rate is 3,490,000 and
12%, respectively. On December 31, 2021, the fair value and effective rate is 3,425,000
and 14%, respectively.
On December 31, 2020, the entity changed the business model to collect contractual cash
flows and also to sell the bonds in an open market. On January 1, 2021, the fair
the bonds
52. What is the interest income for 2020?
a. P280,000
b. P400,000
c.P248,080
d. P354,400
53. What is the interest income for 2021?
a. P425,280
b. P418,800
c. P349,000
d. 244,300
54. What amount unrealized loss is included in profit or loss for 2020?
a. P510,000
b. P456,000
c. P54,000
d. 0
55. What amount unrealized loss is included in profit or loss for 2021?
a. P65,000
b. P0
c. P203,800
d. P138,800
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
