Please include solutions! On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid broker's fees and non-refundable taxes amounting to P118,896. As a result, yield rate on the bond was 9%. Interests are collectible annually every May 31. The bonds were selling at 120, 105, 98 as of December 31, 2019, December 31, 2020 and December 31, 2021; respectively. On September 30, 2021, YODA sold P250,000 face value bonds for a total cost of P280,000. Answer the following questions assuming the company classified the investment as financial assets at amortized cost: How much is the interest income for the year ended December 31, 2019? a. 58,333 c. 93,501 b. 54,542 d. 48,300 Answer given: Letter B. (please show solutions)
Please include solutions!
On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid broker's fees and non-refundable taxes amounting to P118,896. As a result, yield rate on the bond was 9%. Interests are collectible annually every May 31. The bonds were selling at 120, 105, 98 as of December 31, 2019, December 31, 2020 and December 31, 2021; respectively. On September 30, 2021, YODA sold P250,000 face value bonds for a total cost of P280,000.
Answer the following questions assuming the company classified the investment as financial assets at amortized cost:
How much is the interest income for the year ended December 31, 2019?
a. 58,333 c. 93,501
b. 54,542 d. 48,300
Answer given: Letter B. (please show solutions)
12. How much should be the 2021 gain or loss on the sale of the investment?
a. 15,982 c. 9,018
b. 24,315 d. 685
Answer given: Letter A (please show solutions)
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Please include solutions!
On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face
Answer the following questions assuming the company classified the investment as financial assets at amortized cost:
How much should be the 2021 gain or loss on the sale of the investment?
a. 15,982 c. 9,018
b. 24,315 d. 685
Answer given: Letter A (please show solutions)
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