On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker's commission...
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On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker's commission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing market rate for the bonds is 9% at December 31, 2020. If the entity sold the investment on 31 December 2020 at fair value and bonds are classified as FA@FVTOCI, the entity will report a 'reclassification adjustment of O (13.900) O (18.021) Nil O 13.900 18.021
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