SHOW THE SOLUTIONS. INCOMPLETE = DOWNVOTE

ince a 400,000 492,000 600,000 200,000 AS -- On January 1, 2015, Green Company acquired 5-year bonds with a total face value of P5,000,000 for PS, 379,079. The bonds carry an interest on appropriately classified as held for trading. On December 31, 2015, the bonds are quoted at 104%. The effective interest is 10%. On January 3, 2016, the 12 of the bonds were sold at 105%. On July 1, 2016, Green Company changed its business model. It was determined that the remaining investment in bonds should be reclassified to Financial asset at amortized cost on reclassification date. On December 31, 2016, the bonds were quoted at 102%. On January 1, 2017, the bonds were quoted at 104%. 15) How much is unrealized gain or loss to be recognized in 2015 profit or loss? a. 200,000 b. 179, 079 c. 250,000 d. 0 16) How much is realized gain or loss to be recognized in 2016 profit or loss? a. 125,000 b. 64, 540 c. 25, 000 d. 33,493 17) How much is the interest income in 2016? a. 300,000 b. 265, 849 C. 268, 953 d. 0 18) How much is reclassification gain or loss to be recognized in 2016 profit or loss? a. 50,000 b. 125,000 c. 25,000 d. O Using the problem above: Assuming that on January 1, 2015 the investment is appropriately classified as financial asset at amortized cost. Compute the following. 19) How much is the interest income to be recognize in 2015 profit or loss? a. 600,000 b. 537, 908 20) How much is unrealized gain or loss to be recognized in 2015 profit C. 645,489 d. 0 or loss? a. 200,000 b. 179, 079 C. 250,000 d. 0 ==End of Chapter 5== 11