Find what is the unrealized holding gain or loss to be

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Problem 1: On January 1, 2011, ABC Inc. issued a 3-year term bonds payable with face value of P1,000,000 at 97. The annual interest of 10% is payable annually every December 31. ABC Inc. incurred and paid transaction cost related to issuance of stocks in the amount of P18,037. On December 31, 2011, the quoted price of the bonds is at 102. The increase in the fair value of the bonds payable attributable to credit risk amounted to P20,000. what is the unrealized holding gain or loss to be recognized by ABC Inc. for the year ended December 31, 2011 in profit or loss section if it irrevocably designated the bonds payable at financial liability at fair value through profit or loss?

a. (P30,000) loss b. (P20,000) loss c. (P48,037) loss d. (P78,037) loss

Reference no: EM132773105

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