Gratitude Company purchased 5,000, P1,000 face amount, 12% bonds to yield 10%. The carrying amour of the bonds on January 1, 2023 was P5,253,710. The bonds mature on January 1, 2026 and pay interest semi-annually on June 30 and December 31. The entity sold 3,000 bonds on August 1, 2023 for P3,240,000 after the interest has been received. What amount should be recognized as gain / (loss) on sa of bonds? a. 61,841 b. 114,080 C. 133,671 d. 190,134

Gratitude Company purchased 5,000, P1,000 face amount, 12% bonds to yield 10%. The carrying amour of the bonds on January 1, 2023 was P5,253,710. The bonds mature on January 1, 2026 and pay interest semi-annually on June 30 and December 31. The entity sold 3,000 bonds on August 1, 2023 for P3,240,000 after the interest has been received. What amount should be recognized as gain / (loss) on sa of bonds? a. 61,841 b. 114,080 C. 133,671 d. 190,134

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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