On January 1, 2021, Paraguay Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. The fair value of the bonds on December 31, 2021, is P3,150,000. The fair value of the bonds on December 31, 2022, is P3,267,500. If measured at FVOCI, how much is the Unrealized gain on change in fair value-OCI, December 31, 2022 (round-off answer to the nearest peso value)?
On January 1, 2021, Paraguay Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. The fair value of the bonds on December 31, 2021, is P3,150,000. The fair value of the bonds on December 31, 2022, is P3,267,500. If measured at FVOCI, how much is the Unrealized gain on change in fair value-OCI, December 31, 2022 (round-off answer to the nearest peso value)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Paraguay Company purchased P3,000,000 face amount, 9% bonds.
The bonds were purchased to yield 8% interest.
The bonds mature on January 1, 2026, and pay interest annually on December 31.
The entity used 2 decimal places for the PVF.
The fair value of the bonds on December 31, 2021, is P3,150,000.
The fair value of the bonds on December 31, 2022, is P3,267,500.
If measured at FVOCI, how much is the Unrealized gain on change in fair value-OCI, December 31, 2022 (round-off answer to the nearest peso value)?
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