What the carrying value of the bonds reported in december

Assignment Help Financial Accounting

Reference no: EM132661402

In the December 31, 2020 statement of financial position, Mine Company reported its investment in Yours Company's bonds at P1,175,570 amortized cost. The bond which has a face amount of P1,500,000, with stated rate of 6% was acquired to yield 12% will mature in December 31, 2024.

On October 30, 2021, Mine Company changed its business model for managing financial assets and reclassified its investment in Yours Company's bonds.

The fair value at October 30, 2021 and December 31, 2021 of Madrid Company's bonds were P1,200,000 and P1,275,000 respectively.

Assuming that Mine Company reclassified the investment to financial asset measured at FVPL:

Problem a. The gain (loss) recognized and reported in the Profit and Loss section for 2021 is:

Problem b. The carrying value of the bonds reported in the December 31, 2021 balance sheet is:

Problem c. The gain (loss) recognized and reported in the Profit and Loss section for 2022 is:

Reference no: EM132661402

Questions Cloud

What value of l will diminishing returns take effect : The Production Function of a perfectly competitive firm is Q = 80L +12L23 -0.5L, where Q = Output and L = labor input

Derive the equations for average cost : Suppose that you estimate the following cost function for your company, which is a firm operating in a monopolistically competitive market:

Find carrying value of the bonds reported in the december : On January 1, 2019, Adonis Company acquired Argus Company's 8%. Find carrying value of the bonds reported in the December 31, 2020 balance sheet is

Explain the basic reproduction number : Consider a Susceptible-Infected-Recovered (SIR)-model . Briefly explain the terms the 'Basic Reproduction Number',

What the carrying value of the bonds reported in december : In the December 31, 2020 statement of financial position, What the carrying value of the bonds reported in the December 31, 2021 balance sheet is

What is the price of the 4-year coupon bond : A 4-year 5.8% coupon bond is selling to yield 7%. Assume the bond pays interest annually and has a face value of $100.

Logarithmic utility function : Use equations to support your answer. For simplicity assume a logarithmic utility function

How economic trends due to the covid pandemic may impact : XYZ is a local Sydney based company. Explain how economic trends due to the COVID-19 pandemic may impact on the sales forecasting of the company.

What is the real interest rate : You invest $100 in an interest-bearing bank account for 1 year. Suppose that the price of apples today is $2 per unit

User Account

All Pages