FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
On January 1, 2019, YOU TOO Corporation purchased
P1,000,000 10% bonds classified as FA@AC. The bonds
were purchased to yield 12%. Interest is payable annually
every December 31. The bonds mature on December 31,
2023. On December 31, 2019 the bonds were selling at
99. On December 31, 2020, YOU TOO sold P500,000 face
December 31, 2021.
If the entity reclassified the bonds as FA@FVTPL after
the sale, how much should be recognized in profit or
loss on reclassification date?
a. P39,010 c. P31,895
b. P29,010 d. P 0
the sale, how much should be recognized in profit or
loss on reclassification date?
a. P39,010 c. P31,895
b. P29,010 d. P 0
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