Show solution pleasthanks 37. An entity neglected to amortize the premium on outstanding bonds payable. What is theeffect of the failure to record premium amortization in interest expense and bond carryingamount, respectively?a. Understated and understatedb. Understated and overstatedc. Overstated and overstatedd. Overstated and understatedOn January 1, 2022, Moises Corp. acquired ordinary shares (par value, P50) of EzekielCorporation for a total consideration of P3,600,000 which includes P36,000 transaction costs.These shares were acquired for short-term trading purposes. On December 31, 2022, EzekielCorporation ordinary shares were selling at P58 per share.On March 31, 2023, Ezekiel Corporation issued 25% ordinary share dividends. The marketprice of the Ezekiel Corporation ordinary shares on this date was P62 per share. On October29, 2023, Moises sold 30,000 of its Ezekiel Corporation ordinary shares at P57 per share.The market price of Ezekiel Corporation ordinary shares on December 31, 2023 is P52 pershare.38. What amount of unrealized gain (loss) on fair value change shall be reported in profit or lossfor 2022?a. 84,000b. (84,000)c. 120,000d. (120,000)39. What amount of dividend income shall be recognized during 2023?a. Zerob. 180,000c. 750,000d. 930,00040. What amount of gain (loss) on sale shall be reported for 2023?a. 30,000b. (30,000)c. 318,000d. (318,000)41. At what amount should the investment be reported on December 31, 2023?a. 1,560,000b. 1,740,000c. 2,088,000d. 2,340,00042. What amount of unrealized gain (loss) on fair value change shall be reported in profit or lossfor 2023?a. 252,000b. (252,000)c. 306,000d. (306,000)

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37. An entity neglected to amortize the premium on outstanding bonds payable. What is the effect of the failure to record premium amortization in interest expense and bond carrying amount, respectively? a. Understated and understated b. Understated and overstated c. Overstated and overstated d. Overstated and understated

37. An entity neglected to amortize the premium on outstanding bonds payable. What is the effect of the failure to record premium amortization in interest expense and bond carrying amount, respectively? a. Understated and understated b. Understated and overstated c. Overstated and overstated d. Overstated and understated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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