On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price that yields 10%. The bonds pay interest semi-annually. The entity elects the fair value option for valuing financial liabilities. On December 31, 2021, the fair value of the bond is determined to be ₱106,460. The entity recognized interest expense of ₱12,000 in the 2021 income statement. What was the gain or loss recognized in the income statement to report this bond at fair value? (IF gain, leave the numerical figure as is; if LOSS, put a negative (-) sign before the numerical figure)
On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price that yields 10%. The bonds pay interest semi-annually. The entity elects the fair value option for valuing financial liabilities. On December 31, 2021, the fair value of the bond is determined to be ₱106,460. The entity recognized interest expense of ₱12,000 in the 2021 income statement. What was the gain or loss recognized in the income statement to report this bond at fair value? (IF gain, leave the numerical figure as is; if LOSS, put a negative (-) sign before the numerical figure)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12%
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