Reference no: EM132538677
Question - On January 1, 2016, X-MEN Company purchased a quoted debt instrument for Php 8,711,250 and paid Php 277,700 transaction cost. The debt instrument pays a contract rate of 5% on the face value of Php10,000,000 at the end of each financial year for five years. On January 1, 2016, the market interest rate is 8.25%, but the effective rate is 7.5%. At the end of each subsequent financial year, the market interest rates are as follows: December 31, 2016 - 8% : December 31, 2017-7%; December 31, 2018-6%; December 31, 2019-7%; December 31, 2020-8%. Round off PV Factors to four decimal places.
Items 17 through 19 are based on assumptions that the Investments were designated as Investment at FVOCI
Required -
What amount shall be taken to equity as a result of properly measuring the investments in December 31, 2016?
How much is interest income for the year ended December 31, 2017?
How much is the total net amount recognized in the statement of comprehensive Income for the year 2017?
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How much is interest income for the year ended December
: On January 1, 2016, X-MEN Company purchased a quoted debt instrument for Php 8,711,250. How much is interest income for the year ended December
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