On January 2014, Cameron Company established a sinking fund in connection with

an issue of bonds due in 2016. A bank was appointed as independent trustee of the

fund. On December 31, 2014, the trustee held P365,000 cash in the sinking fund

account representing P300,000 in annual deposits to the fund, and P65,000 of

interest earned on those deposits. How should the sinking fund be reported on

December 31,2014?

A. P65,000 should apepar as a current asset

B. P365,000 should appear as a current asset

C. P365,000 should appear as a noncurrent asset

D. No part of the sinking fund should appear in Cameron's statement of financial