1. ABC, Inc. issued P1,000,000, 10% bonds to yield 8%. bond issuance costs were P10,000. How should ABC calculate the net proceeds to be received from the issuance? * a. Discount the bonds at the stated rate of interest. b. Discount the bonds at the stated rate of interest and deduct bond issuance costs. c. Discount the bonds at the market rate of interest. d. Discount the bonds at the market rate of interest and deduct bond issuance costs.

1. ABC, Inc. issued P1,000,000, 10% bonds to yield 8%. bond issuance costs were P10,000. How should ABC calculate the net proceeds to be received from the issuance? * a. Discount the bonds at the stated rate of interest. b. Discount the bonds at the stated rate of interest and deduct bond issuance costs. c. Discount the bonds at the market rate of interest. d. Discount the bonds at the market rate of interest and deduct bond issuance costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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