On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at amortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31. The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. On January 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bonds were selling at 103 on December 31, 2023. Based on the above and the result of your. Note be mindful with the dates.. 1. Provide amortization table 2. Provide Journal Entry

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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.