On January 1, 20x1, Allan Co. purchased P400,000 bonds for P392,000. The bonds mature on January 1,
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Question:
On January 1, 20x1, Allan Co. purchased P400,000 bonds for P392,000. 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?
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