Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to...
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Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro's Investments in Debt Security. Date of purchase: Purchase price: Principal amount: Cash interest: Effective interest: Maturity date: Fair value of the bond: December 31, 2021 at 3% rate December 31, 2022 at 3.5% rate December 31, 2023 at 4% rate December 31, 2024 at 4.5% rate January 1, 2021 P4,200,000 P4,000,000 5% per annum, payable on December 31 3.8806% per annum December 31, 2025 P4,297,368 P4,168,098 P4,075,444 P4,019,139 If initially the investment is accounted for as Amortized Cost for two years and then shifted it to FVOCI method, what amount of income recognized in Profit or loss in 2023? Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro's Investments in Debt Security. Date of purchase: Purchase price: Principal amount: Cash interest: Effective interest: Maturity date: Fair value of the bond: December 31, 2021 at 3% rate December 31, 2022 at 3.5% rate December 31, 2023 at 4% rate December 31, 2024 at 4.5% rate January 1, 2021 P4,200,000 P4,000,000 5% per annum, payable on December 31 3.8806% per annum December 31, 2025 P4,297,368 P4,168,098 P4,075,444 P4,019,139 If initially the investment is accounted for as Amortized Cost for two years and then shifted it to FVOCI method, what amount of income recognized in Profit or loss in 2023?
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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