1. On December 31, 2014, YEN Inc. issued a 3-year P4,500,000 serial bonds payable with 10% interest payable every December 31 starting in 2015. The P4,500,000 bonds is payable through equal annual installment every December 31. The effective interest rate of the bonds is 8%. The bonds are properly classified at financial liability at amortized cost. What is the carrying value of bonds payable on December 31, 2016? a. P1,527,778 b. P1,602,351 c. P1,573,091 d. P1,605,871 2. On November 1, 2014, RICH Inc. issued a 10% P2,000,000 bonds payable at 120. Each 1,000 bond has 10 detachable share warrants with a fair value of P20/warrant. The bonds are trading at 105 without the warrant. Each share warrant can be used to purchase one RICH's ordinary share with P5 par value for P6/share. The bondholders exercised all the warrants on December 31, 2014. What is the amount of bond premium/(discount) on November 1, 2014? a. P100,000 b. P400,000 c. P300,000 d. P200,000 3. On July 1,2013, WELL Inc. acquired 5,000 preference shares of JG Inc. at P10/share and paid transaction costs of P10,000. WELL purchased the investment with the intent of selling them in the near future to generate short-term gains or profits. On December 31,2013, the preference share of JG Inc. is traded at P12/share in the Philippine Stock Exchange. On December 31,2014, the preference share of JG Inc. is quoted at P8/share in the Philippine Stock Exchange. On January 1,2015, WELL sold 2,000 preference shres of JG Inc. for 9/share less disposal cost of P3,000. How much is the realized gain or loss as a result of the disposal of Investment in JG Inc. on January 1,2015? a. P2,000 gain b. P6,000 loss c. P9,000 loss d. P1,000 loss