Reference no: EM132804262

AUDIRING PROBLEMSAssassin Corporation's accounting records included the following investments:

Investment in Ordinary Shares

1/1/18 P1,000,000

7/1/20 P800,000

12/31/18 200,000

12/31/19 300,000

Investment in Bonds

1/1/20 P1,051,510

During the course of your audit, you noted the following.

Investment in Ordinary Shares

1. The investment is not designated at FVTOCI.
2. Acquired on January 1, 2018 at P950,000 plus transaction costs of P50,000.
3. On July 1, 2020, the entity sold half of the investment for its fair value of P800,000.
4. Fair value of the investment: December 31, 2018, P1,200,000; December 31, 2019, P1,500,000; December 31, 2020, P900,000.

Investment in Bonds

1. The entity uses the 'held for collection' business model for acquired and originated debt instruments.
2. P1,000,000, 10% bonds, purchased for P1,051,510 including transaction costs of P20,000. Interest is payable annually every December 31. The bonds mature on December 31, 2022. The effective interest rate is 8%.
3. The prevailing market rate for the bonds is 9% at December 31, 2020.

Question 1: How much is the Total FA-FVPL at Year End?

Question 2: How much is the Total FAFV-OCI at year end?

Question 3: How much is the total Investment at Amortized Cost?

Question 4: The net amount of gain or loss to be recognized in 2020 profit or loss related to these investments shall be?

Question 5: How much gain or loss should be reported in the Other Comprehensive income related to these investments?