Five Co. holds debt securities within a business model whose objective is achieved both by collec contractual cash flows and selling the debt securities. The contractual cash flows are solely paymen principal and interest on specified dates. 5-year, P1,000,000, 7% bonds, were purchased on December 2014, for P1,086,565. The bonds were purchased to yield 5% interest. The following schedule presents amortized cost and fair value of the bonds at year-end: Fair Value Amortized Cost December 31, 2015 December 31, 2016 1,065,000 1,075,000 1,056,500 1,030,000 1,070,893 1,054,438 1,037,160 1,019,018 December 31, 2017 December 31, 2018 December 31, 2019 1.000.00O 1.000.000
Five Co. holds debt securities within a business model whose objective is achieved both by collec contractual cash flows and selling the debt securities. The contractual cash flows are solely paymen principal and interest on specified dates. 5-year, P1,000,000, 7% bonds, were purchased on December 2014, for P1,086,565. The bonds were purchased to yield 5% interest. The following schedule presents amortized cost and fair value of the bonds at year-end: Fair Value Amortized Cost December 31, 2015 December 31, 2016 1,065,000 1,075,000 1,056,500 1,030,000 1,070,893 1,054,438 1,037,160 1,019,018 December 31, 2017 December 31, 2018 December 31, 2019 1.000.00O 1.000.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What amount of unrealized loss should be shown as component of other comprehensive income in the 2017 statement of comprehensive income? *
Transcribed Image Text:Five Co. holds debt securities within a business model whose objective is achieved both by collecting
contractual cash flows and selling the debt securities. The contractual cash flows are solely payments of
principal and interest on specified dates. 5-year, P1,000,000, 7% bonds, were purchased on December 31,
2014, for P1,086,565. The bonds were purchased to yield 5% interest. The following schedule presents the
amortized cost and fair value of the bonds at year-end:
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
Fair Value Amortized Cost
1,070,893
1,054,438
1,037,160
1,019,018
1,000,000
1,065,000
1,075,000
1,056,500
1,030,000
1,000,000
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