Gratitude Company purchased 5,000, P1,000 face amount, 12% bonds to yield 10%. The carrying amour of the bonds on January 1, 2023 was P5,253,710. The bonds mature on January 1, 2026 and pay interest semi-annually on June 30 and December 31. The entity sold 3,000 bonds on August 1, 2023 for P3,240,000 after the interest has been received. What amount should be recognized as gain / (loss) on sa of bonds? a. 61,841 b. 114,080 C. 133,671 d. 190,134
Gratitude Company purchased 5,000, P1,000 face amount, 12% bonds to yield 10%. The carrying amour of the bonds on January 1, 2023 was P5,253,710. The bonds mature on January 1, 2026 and pay interest semi-annually on June 30 and December 31. The entity sold 3,000 bonds on August 1, 2023 for P3,240,000 after the interest has been received. What amount should be recognized as gain / (loss) on sa of bonds? a. 61,841 b. 114,080 C. 133,671 d. 190,134
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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