Assuming the investment is appropriately recognized as financial assets at amortized cost: How much is the interest receivable to be recognized on December 31, 2020?
Assuming the investment is appropriately recognized as financial assets at amortized cost: How much is the interest receivable to be recognized on December 31, 2020?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assuming the investment is appropriately recognized as financial assets at amortized cost: How much is the interest receivable to be recognized on December 31, 2020?
Transcribed Image Text:On March 1, 2020, WHITE Corporation purchased bonds with face amount of P5,000,000. The entity paid 94,585,000 plus transaction
cost of #157,000. The bonds mature on February 28, 2022 and pay 6% interest annually on February 28 of each year with 8% effective
yield. The bonds are quoted at 105 on December 31, 2020. The bonds are sold at 108 on June 30, 2021.
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