For items 22 and 23 On January 1, 2020, Prudence Company purchased bonds with face value of P2,000,000 for P2,103,000. The business model of the entity in managing the financial asset is to collect contractual cash flows that are solely payment of principal and interest and also to sell the binds in the open market. The entity has not elected the fair value option of measuring financial asset. The mature on December 31, 2022 and pay 10% interest annually on December 31 each year with 8% effective yield. The bonds are quoted at 95 on December 31, 2020 and 90 on December 31, 2021. For items 22 and 23 On January 1, 2020, Prudence Company purchased bonds with face value of P2,000,000 for P2,103,000. The business model of the entity in managing the financial asset is to collect contractual cash flows that are solely payment of principal and interest and also to sell the binds in the open market. The entity has not elected the fair value option of measuring financial asset. The mature on December 31, 2022 and pay 10% interest annually on December 31 each year with 8% effective yield. The bonds are quoted at 95 on December 31, 2020 and 90 on December 31, 2021