held for trading. On December 31, 2015, the bonds are quoted at 104%. On January 1, 2015, Virginia Co. acquired a 5-year bonds with a total face val of P5,000,000 for P5,379,079. The bonds carry an...

Please answer NUMBER 1 AND SHOW YOUR SOLUTION

Extracted text: held for trading. On December 31, 2015, the bonds are quoted at 104%. On January 1, 2015, Virginia Co. acquired a 5-year bonds with a total face val of P5,000,000 for P5,379,079. The bonds carry an interest of 12% per year On November 1, 2016, Virginia Co. changed its business model. It : payable every December 31. The bonds are to be appropriately classified 2; determined that the remaining investment in bonds should be reclassified t PROBLEM 15-6 Initial and Subsequent measurement, Derecognition c financial asset measured at amortized cost on reclassification date. C Ond Reclassification of Trading Debt Securities On January 3, 2016, the ½ of the bonds were sold at 105. December 31, 2016, the bonds are quoted at 102. On January 1, 2017, the bonds were quoted at 104. Questions: Based on the above data, answer the following: CASE NO. 1- Assume the above data: 1. How much is the interest income for 2015? c. P600,000 d. P645,489 a. Nil b. P537,908