On July 1, 20x1, Santa Co. acquires P2,000,000 face amount, 10% bonds for P2,000,000 and classifies the investment as FVOCI. On Dec. 31, 20x1, the bonds are quoted at 98 and Santa Co. estimates...


On July 1, 20x1, Santa Co. acquires P2,000,000 face amount,<br>10% bonds for P2,000,000 and classifies the investment as<br>FVOCI. On Dec. 31, 20x1, the bonds are quoted at 98 and Santa<br>Co. estimates 12-month expected credit losses of P10,000.<br>What amounts (excluding interest) are recognized in profit or<br>loss (P/L) and other comprehensive income (OCI) in 20x1?<br>OCI<br>P/L<br>OCI<br>P/L<br>10,000<br>b. 30,000<br>30,000<br>10,000<br>с. 0<br>40,000<br>a.<br>d. 40,000<br>0.<br>

Extracted text: On July 1, 20x1, Santa Co. acquires P2,000,000 face amount, 10% bonds for P2,000,000 and classifies the investment as FVOCI. On Dec. 31, 20x1, the bonds are quoted at 98 and Santa Co. estimates 12-month expected credit losses of P10,000. What amounts (excluding interest) are recognized in profit or loss (P/L) and other comprehensive income (OCI) in 20x1? OCI P/L OCI P/L 10,000 b. 30,000 30,000 10,000 с. 0 40,000 a. d. 40,000 0.

Jun 11, 2022
SOLUTION.PDF
SOLUTION.PDF

Get Answer To This Question

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?