Problem $2$: On January $1,2021,$ ABC Corporation acquired

$2,000$ of $P1,000$ face value $10\%$ bonds of DEF Inc. at market

rate of $9\%.$ During the acquisition ABC incurred transaction cost

which resulted to a yield rate of $8\mathrm{.}75\%.$ The bonds that pay

interest annually every December $31,$ are dated January $1,2021$

and matures on December $31,2025.$ ABC Corporation business

model for this type of investment is to received contractual cash

flows and for sale.

On April $1,2022,$ DEF sold $1,000$ of the bonds at $102$ including

accrued interest and incurring transaction cost of P$20,000.$

On October $1,2022$ upon acquisition of a certain investment,

ABC company has to change its business model to Fair Value

thru Profit and Loss.

The fair values of DEF bonds were as follows:

December $31,2021-101$;

October $1,2022$

$100\mathrm{.}5$; December $31,2022-98$

December $31,2023-99,$ December $31,2024-$

$99\mathrm{.}5$

Compute for the transaction cost related to the acquisition of

investment on January $1,2021.$

How much would be the unrealized gain$/($loss$)$ to be reported

on December $31,2021?$

How much would be the total gain to be recognized as a

result of the sale of investment on April $1,2022?$

How much would be the carrying value of the investment on

December $31,2022$ before adjustment to fair value?

How much would be reported in profit or loss as a result of

the reclassification?

Compute for the total income related to the investment

reported in $2023$ Statement of Profit or Loss.

What is the interest income for $2024?$