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What amount should be recognized as gain on sale of bonds

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ABC Company purchased 8,000, P1,000 face amount, 9% bond to yield 10%. The carrying amount of the bonds on January 1, 2016 was P7,800,000. The bonds mature on June 30,2019 and pay interest semiannually on June 30 and December 31. The entity sold 4,000 bonds on March 1, 2016 for P3,920,000 after the interest has been received.

Question 1: What amount should be recognized as gain on sale of bonds?

Option 1: P0

Option 2: P15,000

Option 3: P25,000

Option 4: Answer not given

Option 5: P20,000

Reference no: EM132568069

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