On January 1, 20x1, Bianca Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The objective of Bianca's business model is to sell such bonds in the near term to take advantage of fluctuations in fair values for short-term profit taking. Accordingly, the bonds were classified as held for trading securities. On December 31, 20x1, the bonds are quoted at 98. On September 30, 20x2, Bianca Co. changed its business model. It was ascertained that the investment should be reclassified to financial asset measured at amortized cost on reclassification date. The bonds were quoted at 101, 103 and 104 on September 30, 20x2, December 31, 20x2 and January 1, 20x3, respectively. 

How much is the gain (loss) on reclassification?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The gain on reclassification is 3807752 ... View the full answer