Michigan Company’s 5-year, P100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2019, for P108,660. Transaction cost related to purchase of bonds is P9,200.
Fair value of the bonds on December 31,2020 –P106,500
Fair Value of the bonds on December 31,2021 –P 107,500
Given the information below: 1. How much is the unrealized gain or loss recognized in Profit or Loss Statement for the year ended December 31, 2020? 2. How much is the unrealized gain or loss recognized by Michigan Co, in its Statement of Comprehensive Income for the year ended December 31, 2020? 3. How much is the cumulative balance of the unrealized gain or loss on the equity instruments in the other comprehensive section of Michigan's s Shareholder's Equity on December 31, 2020? 4. How much is the interest income recognized on the debt instruments in 2021? *Answer in FVPL, FVOCI, Amortized Cost*