please provide solution to the problem: 1. Securities classified as financial asset measured at amortized cost are reported at a. acquisition cost. b. acquisition cost plus amortization of a discount. c. acquisition cost plus amortization of a premium. d. fair value. 2. In accounting for investments in debt securities that are classified as held for trading securities, a. a discount is reported separately. b. a premium is reported separately. c. any discount or premium is not amortized. d. none of these. 3. According to PFRS 9 Financial Instruments, investments in debt securities that are classified at amortized cost are initially measured at a. cost including accrued interest. b. maturity value. c. cost including brokerage and other fees. d. fair value plus brokerage and other fees. 4. Pippen Co. purchased ten-year, 10% bonds that pay interest semiannually. The bonds are sold to yield 8%. One step in calculating the issue price of the bonds is to multiply the principal by the table value for a. 10 periods and 10% from the present value of 1 table. b. 10 periods and 8% from the present value of 1 table. c. 20 periods and 5% from the present value of 1 table. d. 20 periods and 4% from the present value of 1 table. 5. Solo Co. purchased ?300,000 bonds for ?315,000. The securities are to be held until maturity to collect the contractual cash flows. The entry to record the investment includes a. a debit to Held-for-Trading Securities at ?300,000. b. a credit to Premium on Investments of ?15,000. c. a debit to Investment in bonds measured at amortized cost for ?315,000. d. none of these. Use the following information for the next two questions: On January 1, 20x1, Kevin Co. acquired 12%, P4,000,000 bonds for P4,198,948. The principal is due on December 31, 20x3 but interest is made annually starting December 31, 20x1. The effective interest rate on the bonds is 10%. 6. How much is the interest income recognized in 20x1? a. 419,895 c. 407,273 b. 413,884 d. 480,000

7. How much is the carrying amount of the investment on December 31, 20x1? a. 4,198,948 c. 4,072,727 b. 4,138,843 d. 4,000,000 8. On April 1, 20x1, Ronald Ryan Co. acquired 12%, P4,000,000 bonds dated January 1, 20x1 at 98 including interest. The bonds mature on December 31, 20x3 but pays annual interest at each year-end. How much is the initial carrying amount of the investment? a. 3,920,000 b. 3,800,000 c. 4,000,000 d. 4,120,000 9. On January 1, 20x1, Mitch Co. acquired 12%, P4,000,000 bonds at 98. Commission paid to brokers amounted to P204,000. Principal is due on December 31, 20x4 but interest payments are made annually starting December 31, 20x1. The adjusted effective interest rate on the investment is closest to a. 12% b. 11% c. 10.2650% d. indeterminable Use the following information for the next three questions: On January 1, 20x1, ABC Co. acquired 10%, P1,000,000 bonds for P827,135. The bonds mature on December 31, 20x3 and pay annual interest every December 31. ABC Co. incurred transaction costs P80,000 on the acquisition. The effective interest rate adjusted for the effect of the transaction costs is 14%. The bonds are to be held under a "hold to collect and sell" business model. Information on fair values is as follows: December 31, 20x1.. December 31, 20x2... ....102 December 31, 20x3.... ....100 10. How much is the carrying amount of the investment on December 31, 20x1? a. 935,134 b. 1,002,000 c. 980,000 d. 965,443 11. How much is the unrealized gain (loss) recognized in other comprehensive income on December 31, 20x1? a. 45,866 b. (45,866) C. (37,899) d. 0 12. How much is the interest income recognized in 20x2? a. 126,999 c. 135,088 b. 130,779 d. 144,388