On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s commission of P20.000) Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing parget rate for the bonds is 9% on December 31. 2020. Round off present value factors to four 4 decimal places and final answers to the nearest peso. If the investment is classified as financial asset at fair value through other comprehensive income determine the amount to be recognized in 2020 other comprehensive income. P 47, 513 P 76,088 P 12,891 P 8,575

Q: On January 1, 2023, Marigold Corporation purchased a newly issued $1,250,000 bond. The bond matured…

A: Bonds refer to the financial instrument issued by the bank or financial institution at a specified…

Q: On January 1, 2024, Ithaca Corporation purchases Cortland Incorporated bonds that have a face value…

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Q: What is the initial measurement of 2. Assuming the quoted price of the bonds is not determinable,…

A: 1).    a.      1900000 2).     c.     1900000

Q: On January 1, 2024. Ithaca Corporation purchases Cortland Incorporated bonds that have a face value…

A: Bond is a debt security which is purchased to earn the fixed interest on the investment with low…

Q: On December 31, 2019, Sinigang Company purchased debt investments at amortized cost, P3,000,000…

A: Year one Payment: Principal = P1,000,000 Interest (3,000,000 x 10%)=P300,000   Year two Payment:…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Fair Price of the bonds on December 31, 2020 = Present value of principal + Present value of…

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A: The Purchase price of the bond = Present Value of Interest  + Present value of Bond at Maturity.…

Q: • On January 1, 2020, X Company purchased $2,000,000 in bonds that will mature in 10 years and pay…

A: Company needs capital and funds for the purpose of financing its assets. In order to finance the…

Q: On April 1, 2019 SanaPerfect Co. purchased 9%, 3-year, P3,000,000 face value serial bonds at a price…

A: value=Coupon amount*PVAF(YTM,n)+Redemption value*PVIF(YTM,n)

Q: On January 1, 2024, Rare Bird Limited purchased 15% bonds dated January 1, 2024, with a face amount…

A: The bonds a debt securities issued by corporations and government entities to raise funds. Bonds are…

Q: (A) Bridgeport Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September…

A: Bonds represent debts which are issued by the firm to meet the capital requirements. They act as a…

Q: Cookie Dough Corporation issued $850,000 in 9%, 10-year bonds (payable on December 31, 2030) on…

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Q: interest inco

A:

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: 1. Workings: 600,000*7%*6/12= 21,000 Interest paid= 6% interest on carrying value for 6 months…

Q: On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January…

A:

Q: Whispering Company sells 10% bonds having a maturity value of $1,410,000 for $1,308,350. The bonds…

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Q: Sheridan Industries, Inc. issued $17,400,000 of 8% debertures on May 1, 2024 and received cash…

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Q: Nash Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

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Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s…

A: INITIAL RECOGNITION YEAR CASH FLOWS PVF @ 9%   2020 40000 0.9174 36696 2021 40000 0.8417…

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Q: compute the present value of interest and the principle amount

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Q: On January 1, 2021, Mega Corporation purchased P1,000,000, 12% bonds for P1,065,000, a price that…

A: Introduction: Debt funds invest in assets that provide fixed interest, such as corporate bonds,…

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Q: On January​ 1, 2023, Anthony Corporation issued $500,000 of 6%, 5 - year bonds at 99, with interest…

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Q: On March 1, 2021, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $103,000…

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Q: On January 1, 2023, Larkspur Corporation purchased a newly issued $1,500,000 bond. The bond matured…

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Q: A company purchased bonds on July 1, 2024, for $193,404. This price represents a market rate of 9%…

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Q: On January 1, 2023, Marin Corporation purchased a newly issued $1,325,000 bond. The bond matured on…

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Q: On January 1, 2023, Marigold Corporation purchased a newly issued $1,250,000 bond. The bond matured…

A: Bond price is the current market value of a bond, determined by discounting all its future cash…

Q: 30. On January 1, 2023, AAA Company issued as amortized cost P5,000,000 face value,8% bonds for…

A: The bonds are issued at discount when market rate is higher than coupon rate of interest.

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.