On January 1, 2021, Orange Corp. purchased P 1,000,000, 12% bonds of Grapes Inc.for P 1,063,394, a price that yields 10%. Interest on these bonds is payable everyDecember 31. The bonds mature on December 31, 2024. On April 1, 2023, to payOrange Corp.'s other maturing liabilities, sold P 600,000 face value bonds at 101 plusaccrued interest.Market value of the bonds on different dates is as follows:December 31, 2021..December 31, 2022.December 31, 2023.108106104Assume that at initial recognition, the investment is held in the business model ofcollecting contractual cash flows and selling the financial assets; hence, recognizedas debt investment at fair value through other comprehensive income.AmortizationCarryingInterest DateInterest DueEffectiveof PremiumAmountInterestJan. 01, 2021Dec. 31, 2021Dec. 31, 2022Dec. 31, 2023Dec. 31, 2024120,0001,063,3941,049,733120,000120,000120,000106,339104,973103,471101,82313,66115,02716,52918,1771,034,7061,018,1771,000,0002. At what amount should the debt investment be reported in the December 31, 2022statement of financial position?A. P1,060,0003. How much is the unrealized gain/loss taken to other comprehensive income for the yearВ. Р 1,000,000C. P1,034,706D. P1,049,7332021?А. Р 30,267 loss4. How much is the unrealized gain/loss taken to other comprehensive income for the yearB. P 30, 267 gain C. P 80,000 lossD. P 80,000 gain2022?A. P4,973 lossВ. Р4,973 gainC. P 25,294 gain D. P 25,294 loss

C - P1,000,000 No any change up to the date of 2022 .

Market value of the bonds on different dates is as follows: December 31, 2021. December 31, 2022. 108 106 December 31, 2023. 104 issume that at initial recognition, the investment is held in the business m ollecting contractual cash flows and selling the financial assets; hence, reco s debt investment at fair value through other comprehensive income. Carrying Amortization Interest Date Interest Due Effective of Premium Amount Interest Jan. 01, 2021 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 1,063,394 120,000 106,339 13,661 15,027 16,529 18,177 1,049,733 1,034,706 120,000 120,000 120,000 104,973 103,471 101,823 1,018,177 1,000,000

Market value of the bonds on different dates is as follows: December 31, 2021. December 31, 2022. 108 106 December 31, 2023. 104 issume that at initial recognition, the investment is held in the business m ollecting contractual cash flows and selling the financial assets; hence, reco s debt investment at fair value through other comprehensive income. Carrying Amortization Interest Date Interest Due Effective of Premium Amount Interest Jan. 01, 2021 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 1,063,394 120,000 106,339 13,661 15,027 16,529 18,177 1,049,733 1,034,706 120,000 120,000 120,000 104,973 103,471 101,823 1,018,177 1,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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