1. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: How much unrealized gain (loss) is to...

1. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: How much unrealized gain (loss) is to be reflected in the statement of changes in equity and statement of comprehensive income at yearend 2020?

2. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: What is the carrying value of the investment on December 31, 2020?

3. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: Determine the gain or (loss) to be recorded upon the sale of the investment.

Extracted text: On March 1, 2020, WHITE Corporation purchased bonds with face amount of P5,000,000. The entity paid 94,585,000 plus transaction cost of #157,000. The bonds mature on February 28, 2022 and pay 6% interest annually on February 28 of each year with 8% effective yield. The bonds are quoted at 105 on December 31, 2020. The bonds are sold at 108 on June 30, 2021.