PROBLEMS Problem 21-1 (IFRS-From FVOCI to amortized cost) On January 1, 2021 Complex Company purchased bonds with face amount of P5,000,000. The entity paid P4,500,000 plus transaction cost of P168,600. The bonds mature on December 31, 2024 and pay 6% interest annually on December 31 of each year with 8% effective yield. The bonds are quoted at 105 on December 31, 2021 and 110 on December 31, 2022. The business model in managing the financial asset is to collect contractual cash flows and also to sell the bonds in the open market. The entity has not elected the fair value option. On December 31, 2022, the entity changed the business model to collect only contractual cash flows. On December 31, 2023, the bonds are quoted at 115 and the market rate of interest is 10%. Required: 1. Prepare a table of amortization using the effective interest method. 2. Compute the unrealized gain for 2021. 3. Compute the unrealized gain for 2022. 4. Prepare journal entries for 2021, 2022 and 2023.