On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a total of P1,977,800 and classified this as investment at fair value through profit or loss. The effective rate for this type of investment is 12%. The debt instrument pays interest semi-annually on June 1 and December 1. On December 31, 2021, the fair market value of the instruments is 97. How much is the total amount reported in Neon Company’s profit or loss in 2021?

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A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

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A:

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Q: On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal…

A: Value on Decemeber 31, 2021 = (P103 x 10000) = P1030000 Value on the date of purchase  = P951963

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A: 12% bonds[Financial Asset @FVTPL]…

Q: Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization…

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Q: interest inco

A:

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Q: SEED Company

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A:

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