Amortized cost FVOCI b. 12, 545 12,545 d. 16,315 (15,000)

Use the following information for the next three questions: On Jan. 1, 20x1, Koong Co. acquired 100, P5,000 face amount, 10%, 3-year 'term' bonds of King Co. for 2428,567. Koong incurred transaction costs of $25,000 on the acquisition. The effective interest rate adjusted for the transaction costs is 14%. The bonds were quoted at 102 on Dec. 31, 20x2. 2. How much are the interest income in 20x2 and the carrying amount of the bonds on Dec. 31, 20x2 if the bonds are held under a "hold to collect" business model? a. 65,389; 482,455 c. 55,276; 472,834 b. 65,389; 510,000 d. 50,000; 453,567 3. How much are the interest income in 20x2 and the carrying amount of the bonds on Dec. 31, 20x2 if the bonds are held under a "hold to collect and sell" business model? a. 65,389; 482,455 c. 50,000; 428,567 b. 65,389; 510,000 d. 50,000; 510,000 4. What amount of gain (loss) is recognized if the bonds were sold on Jan. 3, 20x3 at 102, transaction costs of P15,000 were incurred on the sale, and the bonds were classified as: Amortized cost FVOCI Amortized cost a. 12,545 (15,000) c. 12,545 FVOCI 0