At the end of the year, the companypurchased as a long-term investment P10,000, 10% bonds to yield 8% per year.The bonds mature on January 1, five yearsafter, and pay interest semiannually onJune 30 and December 31. The presentvalue factors are as follows:Present value of 1 at 4% for 10periods0.6756Present value for an ordinary annuityat 4% for 10 periods 8.11Present value of 1 at 5% for 10periods0.6139Present value for an ordinary annuityat 5% for 10 periods 7.72The carrying amount of this investment atyear end is

Carrying Amount of Investment: Stocks, bonds, mutual funds, exchange-traded funds, and real estate…

At the end of the year, the company purchased as a long-term investment P 10,000, 10% bonds to yield 8% per year. The bonds mature on January 1, five years after, and pay interest semiannually on June 30 and December 31. The present value factors are as follows: Present value of 1 at 4% for 10 0.6756 periods Present value for an ordinary annuity at 4% for 10 periods 8.11 Present value of 1 at 5% for 10 periods 0.6139 Present value for an ordinary annuity at 5% for 10 periods 7.72 The carrying amount of this investment at year end is

At the end of the year, the company purchased as a long-term investment P 10,000, 10% bonds to yield 8% per year. The bonds mature on January 1, five years after, and pay interest semiannually on June 30 and December 31. The present value factors are as follows: Present value of 1 at 4% for 10 0.6756 periods Present value for an ordinary annuity at 4% for 10 periods 8.11 Present value of 1 at 5% for 10 periods 0.6139 Present value for an ordinary annuity at 5% for 10 periods 7.72 The carrying amount of this investment at year end is

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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