On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000 including transaction cost of P160,000. The business model is to collect contractual cash flows and to sell the financial asset. The bonds mature on December 31, 2021 and pay 10% interest annually on December 31 with a 12% effective yield. The bonds are quoted at 102 on December 31, 2019 and 105 on December 31, 2020. The bonds are sold on June 30, 2021 plus accrued interest. what amount of unrealized gain should be reported as component of other comprehensive income for 2020?
On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000 including transaction cost of P160,000. The business model is to collect contractual cash flows and to sell the financial asset. The bonds mature on December 31, 2021 and pay 10% interest annually on December 31 with a 12% effective yield. The bonds are quoted at 102 on December 31, 2019 and 105 on December 31, 2020. The bonds are sold on June 30, 2021 plus accrued interest. what amount of unrealized gain should be reported as component of other comprehensive income for 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000 including transaction cost of P160,000. The business model is to collect contractual
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