On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a price to yield 10%. The bonds mature on December 31, 2025. It pays interest annually every December 31. The securities at the date of acquisition were designated by Grana as FVTOCI. On December 31, 2021, the bonds are quoted in the market at 112, while on December 31, 2022, the bonds are quoted at 106. How much is the amount of Unrealized Gain or Loss - OCI recognized in December 31, 2022?
On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a price to yield 10%. The bonds mature on December 31, 2025. It pays interest annually every December 31. The securities at the date of acquisition were designated by Grana as FVTOCI. On December 31, 2021, the bonds are quoted in the market at 112, while on December 31, 2022, the bonds are quoted at 106. How much is the amount of Unrealized Gain or Loss - OCI recognized in December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a price to yield 10%. The bonds mature on December 31, 2025. It pays interest annually every December 31. The securities at the date of acquisition were designated by Grana as FVTOCI. On December 31, 2021, the bonds are quoted in the market at 112, while on December 31, 2022, the bonds are quoted at 106. How much is the amount of Unrealized Gain or Loss - OCI recognized in December 31, 2022?
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