Jona Company received P 5,300,000 for a P 5,000,000 face amount 12% bond, a price that yields 10%. The bonds pays interest on June 30 and December 31. The entity elected the fair value option. On Dec. 31, 2020, the fair value of the bond is determined to be P 5,125,000 based on market and interest factors. For the year-ended 2020 financial statements, what amount should be reported as interest expense, gain or loss from change in fair value and carrying amount of the bonds payable, respectively? * a. P 600,000, P 175,000 gain and P 5,125,000, respectively b. P 300,000, P 87,500 gain and P 5,125,000, respectively c. P 600,000, P 175,000 loss and P 5,125,000, respectively d. P 300,000, P 87,500 loss and P 5,125,000, respectively
Jona Company received P 5,300,000 for a P 5,000,000 face amount 12%
a. P 600,000, P 175,000 gain and P 5,125,000, respectively
b. P 300,000, P 87,500 gain and P 5,125,000, respectively
c. P 600,000, P 175,000 loss and P 5,125,000, respectively
d. P 300,000, P 87,500 loss and P 5,125,000, respectively
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