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How much is the realized gain or loss

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Reference no: EM133001599

BTS Inc.'s portfolio of debt securities on December 31, 2020 and 2021 are shown below:

                                 Face Value,            Term,              Classification

12% TWICE Corp.    P1,000,000          10 years           DI@FVTOCI

10% BP Corp.          2,000,000            12 years                  DI@AC

12% GOT7 Corp.        3,000,000            15 years             DI@FVTPL

All of the bonds were acquired on January 2, 2020 when the effective rate was 10%. Prevailing market rate of interest at the end of 2020 and 2021 were 12% and 8% respectively.

Problem 1: How much is the total amount unrealized gain or loss recognized in OCI in 2020?

Problem 2: How much is the total Interest income in 2020?

Problem 3: If the GOT7 bonds were sold at 100 on January 2, 2022, how much is the realized gain (loss)?

Reference no: EM133001599

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