n July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. P5,000 gain P12,500 loss P40,000 gain P0
n July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. P5,000 gain P12,500 loss P40,000 gain P0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments.
P5,000 gain
P12,500 loss
P40,000 gain
P0
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