On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including accrued interest and commission.  The commission to acquire the bonds was P5,000. The bonds are dated January 1, 2020 and mature on January 1, 2025, and pay interest semi-annually on January 1 and July 1.  On December 31, 2020, the bonds had a fair value of P920,000.  On April 1, 2021, Purefoods sold the bonds for a total consideration of P950,000.     How much is the gain from the sale of investment in debt securities on April 1, 2021?  Group of answer choices  P65,000  P30,000  P10,00  P45,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including accrued interest and commission.  The commission to acquire the bonds was P5,000. The bonds are dated January 1, 2020 and mature on January 1, 2025, and pay interest semi-annually on January 1 and July 1.  On December 31, 2020, the bonds had a fair value of P920,000.  On April 1, 2021, Purefoods sold the bonds for a total consideration of P950,000. 

  

How much is the gain from the sale of investment in debt securities on April 1, 2021? 

Group of answer choices 

P65,000 

P30,000 

P10,00 

P45,000 

 

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