Problem 21-6 (IFRS- From FVPL to FVOCI) On January 1, 2021, Gerry Company purchased 6% bos with face amount of P4,000,000. The bonds mature on January 1, 2026 and were purchase for P3,530,000 to yield 9%. The entity classified the bonds as held for trading and inters is payable annually every December 31. Fair value Effective rate December 31, 2021 December 31, 2022 3,490,000 3,425,000 10% 12% On December 31, 2021, the entity changed the business model to collect contractual cash flows and also to sell the bonds in the open market. On January 1, 2022, the fair value of the bonds did not chang Required: 1. What amount should be reported as interest income for 2021? 2. What amount of unrealized loss should be reported in the income statement for 2021? 3. What amount should be reported as interest income for 2022? 4. What amount of unrealized loss should be recognized in OCI for 2022? 5. Prepare journal entries for 2021 and 2022.