14. On July 1,2020, Pell Cornpany purchased Green Cormpony ten-year, 8% bonds with a face amount of P5,000.000 for P4,200,000 to be held as financial assets at omortized cost. The bondsrmature on June 30,2026 ond poy interest semiannually on June 30 and December31. Using the interest method, Pell recorded bond discount amortization of P18,000 for the sixmonths ended December 31,2020. From this investment, Pell should report 2020 interest income of Q. 168,000 b. 182,000 C. 200.000 d. 218,000

14. On July 1,2020, Pell Cornpany purchased Green Cormpony ten-year, 8% bonds with a face amount of P5,000.000 for P4,200,000 to be held as financial assets at omortized cost. The bondsrmature on June 30,2026 ond poy interest semiannually on June 30 and December31. Using the interest method, Pell recorded bond discount amortization of P18,000 for the sixmonths ended December 31,2020. From this investment, Pell should report 2020 interest income of Q. 168,000 b. 182,000 C. 200.000 d. 218,000

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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