What amount of unrealized gain should be shown in the 2018 statement of changes in equity? * Five Co. holds debt securities within a business model whose objective is achieved both by collectingcontractual cash flows and selling the debt securities. The contractual cash flows are solely payments ofprincipal 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 theamortized cost and fair value of the bonds at year-end:December 31, 2015December 31, 2016December 31, 2017December 31, 2018December 31, 2019Fair Value Amortized Cost1,070,8931,054,4381,037,1601,019,0181,000,0001,065,0001,075,0001,056,5001,030,0001,000,000

Five Co. holds debt securities within a business model whose objective is achieved both by collectin contractual cash flows and selling the debt securities. The contractual cash flows are solely payments principal and interest on specified dates. 5-year, P1,000,000, 7% bonds, were purchased on December 3 2014, for P1,086,565. The bonds were purchased to yield 5% interest. The following schedule presents tỉ 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

Five Co. holds debt securities within a business model whose objective is achieved both by collectin contractual cash flows and selling the debt securities. The contractual cash flows are solely payments principal and interest on specified dates. 5-year, P1,000,000, 7% bonds, were purchased on December 3 2014, for P1,086,565. The bonds were purchased to yield 5% interest. The following schedule presents tỉ 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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 7MCQ

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