On January 1, 2023, Forensic Com investee for P3,000.000, The inves cost method. pany acquired a 10% interest in an tment was accounted for using the On January 1, 2024, the entj ty acquired a fi r 15% interest i savestee for P6,750.000. ql a further 15% interest in the Onsuch date. the carrying amount of the net assets of the investee was P36.000.000 and the fair value of the 10% interest was P4.500.000. The fair value of the net assets of the invesiee isequal to carrying amount except for an equipment whose fair value exceeds carrying amount by P4,000,000. The equipment has a remaining life of 5 years. The investee reported net income of P8,000,000 for 2024 and paid cash dividend of P5.000,000 on December 31, 2024, 1. What amount of gain on remeasurement to equity should be recognized for 2024? 1.500.000 4.500.000 2,250,000 0 ao sp What is the carrying amount of the investment in associate on December 31, 2024? ww a. 11.250.000 b. 11,800.000 ¢. 12,000,000 d. 14,300,000plue Company purchased 10% of Tot Company’s 100,000 outstanding ordinary shares on January 1, 2023 for P500,000. December 31, 2023, Blue Company purchased iti 000 shares of Tot Company for P1 b Sc ne ice 500,000. Tot C d not issued any additional shares during 2023, ee The fair value of the 10% interest is P900,000 on December 31, 2023. The investee reported earnings of P3,000,000 for 2023. What is the carrying amount of the investment in associat : eon December 31, 2023? 2,300,000 2,000,000 2,400.000 . 2,900,000 ae SP2023, Mega Company acquired 10% of the hares of Penny Company for P4,000,099 ly accounted for under cost method, On January 1, outstanding ordinary s| The investment was appropriate! lega Company gained the ability to exercise significant influence over financial and operating control of Penn, Company by acquiring an additional 20% of Penny Company's outstanding ordinary shares for P1 0,000,000. On January 1, 2024,M The fair value Penny Company’s net assets equaled carrying amount, The fair value of the 10% interest on January |, 2024 was P6,000,000. For the years ended December 31, 2023 and 2024, the investee reported the following: 2023 2024 Dividend paid 2,000,000 3,000,000 * Net income 6,000,000. 6,500,000 1. What amount should be reported as investment income in 2023? a. 200,000 b. 400.000 c. 600,000 d. 300,000 2. What amount should be reported as investment income in 2024? e a. 1,300,000 b. 1,950,000 c. 1,000,000 d. 1,900,000 3. What is the carrying amount of the investment .in associate on December 31, 2024? a. 16,000,000 b. 17,050,000 c. 15,050,000 d. 16,700,000onJuly 1, 2023, Cody Terbany paid P1.198.000 of 10%, 20-year ponds with a face amount of P[,000,000. Interest is paid on Fave 30 and December 31. The bonds were purchased to yield 8%. method is used to recognize Interest inco investment. : The effective interest me from this long-term What is the carrying amount of the investment in bonds on December 31. 2023? 207,900 198,000 19 19 5.920 3.050 ao op | 1, i 1,On January 1, 2023, Purl Company purchased as a long-te investment P5,000,000 face amount of Shaw Company’s 8% bona for P4,562,000. The bonds were purchased to yield 10% intereg The bonds mature on January 1, 2028 and pay interest annually December 31. The interest method of amortization is used, n 1. What amount should be reported as interest income for 20249 . 456,200 461,820 400,000 369,456 Or oS What is:the carrying amount of the bond investment on December 31, 2024? 4,680,020 4,662,000 4,618,200 4,562,000 N BO 8.2y 23;--YorkC on July |, 20 ompan 46,000, including accrued interest of P40 6 ie ee »UUU. re purchased to yield 10% interest. ds mature on January 1, 2029, and pay interest annually on The bon january 1. York Company used the effective interest method of amortization. |, What amount should be reported as interest income for 2023? a, 80,000 b. 90,600 c. 45,300 d. 40,000 9, On December 31, 2023, what is the carrying amount of the investment in bonds? - a. 911,300 b. 916,600 ce. 953,300 d. 960.600ea . . ap TIT tthe beginning of current year, De ‘ “Dean ponds we Bee amount or P5000,000 ny purchased ten-year g% ery payable semiannually June 30 a Stated interest rate of ponds were acquired to yield 10%; 90 and December 31. The resent value of | for 10 periods at 10% t value of | for 2 , Present value of an ennui ue deat ae : ae present value of an annuity of | for 29 cea 7 10% ete What is the market price or purchase price of the bx ies 3,487,500 © bonds? * 3'500,000 >. . 3000.00 © 4392.00January 1, 2023, Queen Com mount of P5,000,000 for P4.760.000; Purchased bonds with face i 2 : sa cluding transaction cost of e business model is to collect cont Te sings node ractual cash flows and to sell e borids mature on December 31,2025 ‘ Tmecember 31 witha l2%efeeine viel |%ierest annual The bonds are quoted at 102 on December 31, 2024. The bonds ar accrued interest. December 31, 2023 and 105 on € sold at 110 on June 30, 2025 plus _ Whatamount of unrealized gain should be reported as component of other comprehensive income for 2023? . 268,800 100,000 340,000 0 2, What amount of unrealized gain should be reported as component _ of other comprehensive income for 2024? a 339,056 eo oP b. .221,200 c. 70,256 dq, 0 we . What amount should be recognized as gain on sale of the bond investment on June 30, 2025? a. 544,528 b. 794,528 © 250.000 d. 589,056On January 1,2023, Michelle Company purchased bonds with fac. amount of P5,000,000. The entity paid P4,600,000 plus transaction cost.of P142,000. ~ " The bonds mature on December 31, 2025 and pay 6% interest annually on December 31 of each year with 8% effective yield, The bonds are quoted at 105 on December 31, 2023 and 119 on December 31, 2024. . The business model in managing the financial asset is to collect contractual cash flows that are solely payments of principal and interest and also to sell the bonds in the open market. 1.. What amount of unrealized gain should be reported as component of other comprehensive income for 2023? 250,000 400,000 428,640 0 eo oPp 2. What cumulative amount of unrealized gain should be reported as component of other comprehensive income in the statement of changes in equity for 2024? 500,000 592,931 164,291 0 ae ep 3. What amount should be reported as interest income for 2024? 300,000 379,360 385,709 392,931 pop