Question
On January 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid brokers fees amounting to P118,896. As
On January 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid brokers fees amounting to P118,896. As a result, yield rate on the bond was 9%. Interests are collectible annually every January 1. The bonds were selling at 120, 102, 98 as of December 31, 2019, December 31, 2020 and December 31, 2021, respectively. The company classified the investment as Fair Value through Other Comprehensive Income. How much is the unrealized gain or loss that should be reported for the year ended December 31, 2020?
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
