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What amount of unrealized gain or loss

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Q1. Europe Corp. acquired on January 1, 2019 a 5 year, 10%, P5,000,000 face value bonds, for P4,639,400 dated January 1, 2019. The bonds which pay interest every December 31 had a 12% prevailing interest rate on the date of acquisition. Europe designated the investment as debt investments at amortized cost. The prevailing interest rate on December 31, 2019 is at 9%.

How much is the correct interest income for the year 2020?

How much is the unrealized gain/loss to be reported in the company's 2019 statement of comprehensive income?

What is the adjusted balance of the Investment as of December 31, 2019?

How much is the carrying value of Investment on December 31, 2022?

Q2. On January 1, 2019, Africa Corporation purchased 2,000 of the P1,000 face value, 9%, 10-year bonds of Continent Inc. The company paid a broker's fee of P100,000. The bonds mature on January 1, 2029, and pay interest annually beginning December 31, 2019. Africa Corporation purchased the bonds 110 and classified this as Investment at Fair value through Profit or Loss.

Market values of the bonds are as follows:

December 31, 2019 95

December 31, 2020 98

How much is the interest income for the year 2019?

What is the carrying value of the investment on December 31, 2020?

How much is the unrealized gain/loss that should be reported in 2019 profit or loss statement?

Q3. On June 30, 2018, Asia Company purchased P4,000,000 of 16% bonds to yield 14% for P4,280,752. Interest is payable semi-annually on June 30 and December 31. The bonds mature in five years. Asia uses the calendar year and the effective interest method of amortization. The investment was designated as Investment at FVOCI.

Market values of the bonds on different dates are as follows:

December 31, 2018 108

December 31, 2019 106

What amount of unrealized gain or loss shall be taken to OCI in the statement of comprehensive income as a result of properly measuring the investments on December 31, 2018?

How much is the interest income for the year ended December 31, 2019?

How much is the unrealized gain or loss that should be presented in the statement of financial position on December 31, 2019?

Reference no: EM133169566

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