On January 1, 2022, Sami Company purchased P1.000.000, 12% bonds for P1,031,024, a price that yields...
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On January 1, 2022, Sami Company purchased P1.000.000, 12% bonds for P1,031,024, a price that yields 11%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2025. On April 1, 2023, Sami Company sold P800,000 face value bonds at a total proceeds of P825,000. Market values of the bonds were as follows: December 31, 2022 December 31, 2023 102 101 How much is the gain (loss) on sale on April 1, 2023 assuming that Sami Company has no objective of collecting contractual cash flows? On January 1, 2022, Sami Company purchased P1.000.000, 12% bonds for P1,031,024, a price that yields 11%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2025. On April 1, 2023, Sami Company sold P800,000 face value bonds at a total proceeds of P825,000. Market values of the bonds were as follows: December 31, 2022 December 31, 2023 102 101 How much is the gain (loss) on sale on April 1, 2023 assuming that Sami Company has no objective of collecting contractual cash flows?
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Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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