Use the following information for the next four questions:On Jan. 1, 20x1, Red Co. acquires P500,000 face amount, 10%,bonds of Ball Co. for P487,656. Red Co. incurred transaction costsequal to 5% of the face amount of the bonds. The bonds mature onDec. 31, 20x3 and pay annual interest every Dec. 31. The bondswere quoted at 102 and 104 on Dec. 31, 20x1 and Dec. 31, 20x2.respectively. comprehensive income (OCI) and in equity in 20x2 if theDec. 31, 20x2 if the bonds were measured at amortized cost?9. What amounts of fair value gain (loss) is recognized in other8. How much is the unamortized bond discount orpremium conc. 8,795 premiumd. 4,587 premiuma. 4,587 discountb. 5,129 discountcomprehensive income (OCI) and in equity in 20x2 ifbonds were measured at FVOCI?Equity14,208OCIEquity15,413OCIa. 15,413b. 17,899с. 14,208d. 1,20532,41015,41310. How much is the gain (loss) if half of the bonds were sold onJuly 1, 20x3 at 103, transaction costs of P7,000 were incurred onthe sale, and the bonds were measured at amortized cost?b. (78,123)a. (13,147)c. (25,647)d. (6,541)

Principal Amount = ₽500,000 Interest = ₽50,000

Use the following information for the next four questions: On Jan. 1, 20x1, Red Co. acquires P500,000 face amount, 10%, bonds of Ball Co. for P487,656. Red Co. incurred transaction costs equal to 5% of the face amount of the bonds. The bonds mature on Dec. 31, 20x3 and pay annual interest every Dec. 31. The bonds were quoted at 102 and 104 on Dec. 31, 20x1 and Dec. 31, 20x2, respectively.

Use the following information for the next four questions: On Jan. 1, 20x1, Red Co. acquires P500,000 face amount, 10%, bonds of Ball Co. for P487,656. Red Co. incurred transaction costs equal to 5% of the face amount of the bonds. The bonds mature on Dec. 31, 20x3 and pay annual interest every Dec. 31. The bonds were quoted at 102 and 104 on Dec. 31, 20x1 and Dec. 31, 20x2, respectively.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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