On December 31, 2022, half of the remaining bonds were retired by virtue of an asset swap. The property had a carrying amount of P1,570,000. Its fair value of P2,050,000 approximated the fair value of the bonds with conversion privilege. The bonds had a fair value of 101 without the conversion privilege. How much is the net gain or loss on the asset swap?

On December 31, 2022, half of the remaining bonds were retired by virtue of an asset swap. The property had a carrying amount of P1,570,000. Its fair value of P2,050,000 approximated the fair value of the bonds with conversion privilege. The bonds had a fair value of 101 without the conversion privilege. How much is the net gain or loss on the asset swap?

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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