What amount be reported as gain from change in fair value

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Problem 1: On January 1, 2020, Dessert Company issued 6% bonds with face amount of P6,000,000 for net proceeds of 5,516,400, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2020, the bonds are quoted at 95. What amount should be reported as gain/loss from change in fair value for 2020?

a. 183,600 gain
b. 483,600 loss
c. 183,600 loss
d. 483,600 gain

Reference no: EM132806652

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