JYP Company debt investments

On January 1, 2019, JYP Company purchased P1,200,000, 14% bonds of…

On January 1, 2019, JYP Company purchased P1,200,000, 14% bonds of PSY Company for P1,352,143, a price that yields 10%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2022. On April 1, 2021, to pay a maturing obligation, JYP sold P720,000 face value bonds at 101 plus accrued interest. Market value of the bonds on different dates is as follows:

December 31, 2019 108

December 31, 2020 106

December 31, 2021 104

Assume that the bonds were classified as debt investments at fair value through profit or loss.

  1. What amount of gain or loss should be reported on the sale of the bond investments in April 1, 2021?
  2. At what amount should the bond investments be should on December 2020 statements of financial position?
  3. How much is interest income for the year ended December 31, 2019?
  4. At what amount should the bond investments be should on December 2021 statements of financial position?

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