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Compute the amount of gain-loss on reclassification

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Question - On January 1, 20X1, ABC acquired 5,000 of XYZ's bonds denominated at P1,000, 12% interest rate, 5 years, intending to collect contractual cash flows. The effective rate in the market at that time is 10%. On December 31, 20X1, the market value of the bonds is P5,250,000. ABC changes its business model into trading. Compute the amount of gain/loss on reclassification on 20X2.

Reference no: EM132981921

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