held for trading. On December 31, 2015, the bonds are quoted at 104%. On November 1, 2016, Virginia Co. changed its business model. t w. On January 1, 2015, Virginia Co. acquired a 5-year bonds with a total facce valse of P5,000,000 for P5,379,079. The bonds carry an interest of 12% per yer PROBLEM 15-6 Initial and Subsequent measurement, Derecognition e payable every December 31. The bonds are to be appropriately classified financial asset measured at amortized cost on reclassification date. O. determined that the remaining investment in bonds should be reclassified to and Reclassification of Trading Debt Securities On January 3, 2016, the 2 of the bonds were sold at 105. December 31, 2016, the bonds are quoted at 102. On January 1, 2017, the bonds were quoted at 104. Questions: Based on the above data, answer the following: CASE NO. 1- Assume the above data: 1. How much is the interest income for 2015? c. P600,000 d. P645,489 а. Nil b. P537,908 2. How much is the unrealized gain (loss) in 2015 to be recognized in te profit or loss? Nil C. P200,000 d. P(379,079) a. b. P(179,079) 3. How much is the realized gain (loss) on sale in 2016 to be recognized in profit or loss? Nil c. P(33,494) d. P(64,540) а. A P25,000 b.
held for trading. On December 31, 2015, the bonds are quoted at 104%. On November 1, 2016, Virginia Co. changed its business model. t w. On January 1, 2015, Virginia Co. acquired a 5-year bonds with a total facce valse of P5,000,000 for P5,379,079. The bonds carry an interest of 12% per yer PROBLEM 15-6 Initial and Subsequent measurement, Derecognition e payable every December 31. The bonds are to be appropriately classified financial asset measured at amortized cost on reclassification date. O. determined that the remaining investment in bonds should be reclassified to and Reclassification of Trading Debt Securities On January 3, 2016, the 2 of the bonds were sold at 105. December 31, 2016, the bonds are quoted at 102. On January 1, 2017, the bonds were quoted at 104. Questions: Based on the above data, answer the following: CASE NO. 1- Assume the above data: 1. How much is the interest income for 2015? c. P600,000 d. P645,489 а. Nil b. P537,908 2. How much is the unrealized gain (loss) in 2015 to be recognized in te profit or loss? Nil C. P200,000 d. P(379,079) a. b. P(179,079) 3. How much is the realized gain (loss) on sale in 2016 to be recognized in profit or loss? Nil c. P(33,494) d. P(64,540) а. A P25,000 b.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer NUMBERS 2 and 3 AND SHOW YOUR SOLUTION
Transcribed Image Text:held for trading. On December 31, 2015, the bonds are quoted at 104%.
On January 1, 2015, Virginia Co. acquired a 5-year bonds with a total face valve
of P5,000,000 for P5,379,079. The bonds carry an interest of 12% per yr
PROBLEM 15-6 Initial and Subsequent measurement, Derecognition c
financial asset measured at amortized cost on reclassification date. 0
payable every December 31. The bonds are to be appropriately classified ,
On November 1, 2016, Virginia Co. changed its business model. It ·
2018 and Dece
Reclassification of Trading Debt Securities
On January 1, 2015, Virginia Co. acquired
and
held for trading. On December 31, 2015, the bonds are quoted at 10 las
On January 3, 2016, the 2 of the bonds were sold at 105.
determined that the remaining investment in bonds should he
financial asset measured at amortized
December 31, 2016, the bonds are quoted at 102.
reclassified
cost on reclassification dat,
On January 1, 2017, the bonds were quoted at 104.
Questions:
Based on the above data, answer the following:
CASE NO. 1- Assume the above data:
1. How much is the interest income for 2015?
c. P600,000
d. P645,489
а.
Nil
b. P537,908
2. How much is the unrealized gain (loss) in 2015 to be recognized in t
profit or loss?
Nil
c. P200,000
d. P(379,079)
а.
b. P(179,079)
How much is the realized gain (loss) on sale in 2016 to be recognized in e
profit or loss?
Nil
c. P(33,494)
d. P(64,540)
а.
b. P25,000
3.
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