The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit BalanceJanuary2, 2022VRVR P1,812,300 P1,812,300June 30, 2022CRJ 60,000 1,752,300Dec. 31, 2022CRJ 60,000 1,692,300Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000.Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual)One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. How much is the gain or loss on sale as of December 31, 2022?

Answered: 2022 VR

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following investment account was taken from the general ledger of One Dream Investment Company:

Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027)

In the course of your examination, you obtained the following information:

Interest checks were received on June 30 and December 31 and were credited to the investment account.
One dream sold P200,000 of its investment on December 31, 2022 for P195,000.
Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual)
One Dream included this investment in a portfolio that is held to collect and for sale.
The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively.

How much is the gain or loss on sale as of December 31, 2022?

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