P Problem 20-23 (IAA) On January 1, 2020, Gelyka Company purchased 12% bonds transaction cost of P100,000. The bonds provide an effective with face amount of P5,000,000 for P5,500,000 including yield of 10% The bonds are dated January 1, 2020 and pay interest annually on December 31 of each year. The bonds are quoted at 115 on December 31, 2020. The entity has irrevocably elected to use the fair value option 1. What amount of gain from change in fair value should be reported for 2020? a. 750,000 b. 250,000 c. 350,000 d. 0 2. What amount of interest income should be reported for 2020? a. 600,000 b. 550,000 c. 660,000 d. 540,000 3. What is the carrying amount of the bond investment on December 31, 2020? a. 5,750,000 b. 5,400,000 c. 5,500,000 d. 5,450,000 4. What total amount of income from the investment should be reported in the income statement for 2020? a. 540,000 b. 950,000 c. 890,000 d. 900,000 574