On January 1, 2020, Ye Company purchased 8% bonds in the face amount of P4,000,000. The bonds mature on January 1, 2025, and were purchased for P4,335,000 to yield 6%. Interest is payable every December 31. The business model for this investment is to collect contractual cash flows composed of principal and interest and to sell the asset in the open market. Fair value on December31, 2020, was P3,870,000 at 9% effective rate. Fair value on December 31, 2021,was P3,615,000 at 12% effective rate. On December 31, 2020, the entity changed the business model for this investment to realize fair value changes. On January 1, 2021, the fair value of the bonds did not change. What total amount is included in profit or loss in 2021 as a result of the reclassification from FVOCI to FVPL? A.P450,100 gain B.P660,100 gain C.P660,100 loss D.P450,100 loss
On January 1, 2020, Ye Company purchased 8% bonds in the face amount of P4,000,000. The bonds mature on January 1, 2025, and were purchased for P4,335,000 to yield 6%. Interest is payable every December 31. The business model for this investment is to collect contractual
A.P450,100 gain
B.P660,100 gain
C.P660,100 loss
D.P450,100 loss
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