35. On March 1, 2021, saya Company issued P5, 000, 000 of 12% nonconvertible bonds at 103 which are due on February 28, 2026. In addition, each P1, 000 bond was issued with 30 detachable share warrants, each of which entitled the bondholder to purchase, for P50, one ordinary share of saya Company, par value P25. On March 1, 2021, the quoted market value for each warrant was P4. The market value of the bonds exwarrants at the time of issuance is 95. What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity? a. P200, 000 b. P300, 000 c. P400, 000 d. P600, 000

1. Which of the following statements regarding bond investment classified as held for trading is incorrect? a. Interest income is equal to carrying value multiply by yield rate. b. No recognition of premium or discount, thus, no amortization. c. Debt investment classified as financial assets at fair value through profit or loss (FVTPL) is subsequently measured at fair value, with changes in fair value included in profit or loss. d. Transaction costs that are directly attributable to their acquisition does not form part of the cost of investment and is recorded as an expense.

2. Which of the following statements regarding bond investment classified as FVOCI is incorrect? a. When a financial asset at FVOCI is sold, any unrealized gain or loss previously recognized in equity is recycled to profit or loss as reclassification adjustment. b. Interest income is based on amortized cost at the beginning of the period multiply by the effective rate of interest. c. Debt investment at fair value through other comprehensive income (FVOCI) is initially recognized at purchase price which is the fair value at the date of acquisition minus transaction costs that are directly attributable to their acquisition. d. None of the above.

3. When debt investments measured at FVOCI are disposed of, the amount previous of gains accumulated in equity through other comprehensive income a. shall be left in equity without reclassification. b. shall be transferred to retained earnings c. shall be transferred to profit or loss. d. shall be reclassified to other items of other comprehensive income.

4. The interest revenue reported for a debt investment at amortized cost initially acquired at a discount is equal to a. the effective interest rate multiplied by the face amount of the bond investment. b. the effective interest rate multiplied by the carrying amount of the bond investment at the beginning of the year. c. the stated interest rate multiplied by the face amount of the bond investment. d. the stated interest rate multiplied by the carrying amount of the bond investment at the beginning of the year.

5. Under IFRS 9, the classification of debt investments shall be made on the basis of a. the business model for managing the financial asset. b. contractual cash flow characteristics of the financial asset. c. management's intention of holding the debt instruments. d. both the business model for managing the financial asset and the contractual cash flow characteristics of the financial asset.