Black Company purchased P400,000 of 10% bonds of White Co. on January 1, 2021, paying P376,100. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of P23,900 provides an effective yield of 11%. Black Company uses the effective-interest method and holds these bonds for collection. For the year ended December 31, 2021, the amount of interest revenue reported by Black Company from its investment in White Company was Choices: P40,000 P41,368 P41,409 P42,392
Black Company purchased P400,000 of 10% bonds of White Co. on January 1, 2021, paying P376,100. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of P23,900 provides an effective yield of 11%. Black Company uses the effective-interest method and holds these bonds for collection. For the year ended December 31, 2021, the amount of interest revenue reported by Black Company from its investment in White Company was Choices: P40,000 P41,368 P41,409 P42,392
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Black Company purchased P400,000 of 10% bonds of White Co. on January 1, 2021, paying P376,100. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of P23,900 provides an effective yield of 11%. Black Company uses the effective-interest method and holds these bonds for collection. For the year ended December 31, 2021, the amount of interest revenue reported by Black Company from its investment in White Company was
Choices:
P40,000
P41,368
P41,409
P42,392
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