1. On July 1, 2019, Hello Corporation acquired an investment at amortized cost in Screen Company's 10-yr, 12% bonds, with face value of P5.000.000 for P5,386,300. Interest is payable semi annually on January 1 and July 1. The bonds mature on July 1, 2024. Bonds effective rate is 10%. On December 31, 2020, Hello sold its debt instrument at 110. What amount of gain should Hello corporation recognize as a result of the disposal? 245,956 210,434 176.604 144,385
1. On July 1, 2019, Hello
Corporation acquired an investment at amortized cost in Screen Company's 10-yr, 12% bonds, with
face value of P5.000.000 for P5,386,300. Interest is payable semi annually on January 1 and July 1. The bonds mature on July 1, 2024. Bonds effective rate is 10%. On December 31, 2020, Hello sold its debt instrument at 110. What amount of gain should Hello corporation recognize as a result of the disposal?
245,956
210,434
176.604
144,385
2. Bili Company acquired a building on January 1, 2019 for P 9,000,000. At that date the building had a useful life of 30 years. On December 31, 2019, the fair value of the building was P 9,600,000 and on December 31, 2020, the fair value is P 9,800,000. The building was classified as an investment property and accounted for under the cost model. What amount should be carried in the
8,700,000
8,400,000
9,000,000
9,800,000
3. At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of P 2,000,000. On December 31, 2019, the fair value was P2,200,000 and on December 31, 2020, the fair value was P1,950,000. The property had a useful life of 25 years. Under the cost method, what is the expense
recognized in the profit or loss for the year ended December 31, 2020?
4. At the beginning of the year 2019, 5 points Itlog Company has an investment property acquired at a cost of P 2,000,000. On December 31, 2019, the fair value was P2.200.000 and on December 31, 2020, the fair value was P1,950,000. The property had a useful life of 25 years. Under the fair value method, what is the expense recognized in the profit or loss for the year ended December 31, 2020?
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