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ABC company holds bonds with face value of P1,000,000 acquired at the beginning of the year at P1,100,000. At the end of the year, the
ABC company holds bonds with face value of P1,000,000 acquired at the beginning of the year at P1,100,000. At the end of the year, the fair value of the bonds is P1,200,000. The bonds bear interest of 10% and discounts or premiums are amortized over the term of the bonds of 5 years. The entity has elected the fair value option in valuing bond investments. At the end of the year, the bonds shall be reported at P1.100.000 P1,080.000 O P1.200.000 O P1.000.000
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