On December 31, 2020, ABC Co. had outstanding 12%, P5,000,000 face value bonds maturing on December 31 2023. Interest was payable semiannually every June 30 and December 31. On December 31, 2020, after amortization was recorded for the period, the unamortized bond discount and bond issue cost were P500,000 and P300,000, respectively. On that date ABC acquired all its outstanding bond on the open market at 98 and retired them. At December 31 2020, what amount should ABC recognize as pretax loss on early extinguishment of bonds? On January 1, 2020, ABC Company converted its 12%, P1,500,000 face value bonds payable with carrying amount of P1,552,049 for 20,000 ordinary shares with a par value of P50. The bonds were originally issued to yield 10%. The fair value of the bonds on the date of retirement is P1,600,000. Assuming that the bonds are convertible and the share premium from conversion option was P60,000. How much is the gain (loss) on conversion of the bonds to be recognized in the profit or loss during the period?
On December 31, 2020, ABC Co. had outstanding 12%, P5,000,000 face
On January 1, 2020, ABC Company converted its 12%, P1,500,000 face value bonds payable with carrying amount of P1,552,049 for 20,000 ordinary shares with a par value of P50. The bonds were originally issued to yield 10%. The fair value of the bonds on the date of retirement is P1,600,000. Assuming that the bonds are convertible and the share premium from conversion option was P60,000. How much is the gain (loss) on conversion of the bonds to be recognized in the profit or loss during the period?
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