On January 1, 20x1, Allan Co. purchased 400,000 bonds for 392,000. The bonds mature on January 1,
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On January 1, 20x1, Allan Co. purchased ₱400,000 bonds for ₱392,000. The bonds mature on January 1, 20x5 and pay 12% annual interest beginning January 1, 20x2. Transaction costs are negligible. The bonds were classified as held for trading securities. On December 31, 20x1, the bonds are selling at a yield rate of 10%. How much is the unrealized gain (loss) recognized on December 31, 20x1?
a. 27,986
b. 31,298
c. 28,964
d. 33,359
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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