7. On January 1, 2011, Marielle Company received P107,720 for a P100,000 face amount, 12% bond; a price that yields 10%. The bond pays interest semiannually. Marielle Company elected the fair value option for valuing its financial liabilities. On December 31, 2011, the fair value of the bond is determined to be P106,460. What is the gain that should be recognized in 2011 to report this bond at fair value? *

7. On January 1, 2011, Marielle Company received P107,720 for a P100,000 face amount, 12% bond; a price that yields 10%. The bond pays interest semiannually. Marielle Company elected the fair value option for valuing its financial liabilities. On December 31, 2011, the fair value of the bond is determined to be P106,460. What is the gain that should be recognized in 2011 to report this bond at fair value? *

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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