On Janaury 1, 2021, Eastern Corp. received P 1,077,200 for P 1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually every January 1 and July 1. The entity has elected the fair value option for measuring the financial liability. On Dec. 31, 2021, the fair value of the bonds is determined to be P 1,064,600 due to market and interest factors. What is the interest expense for 2021?
On Janaury 1, 2021, Eastern Corp. received P 1,077,200 for P 1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually every January 1 and July 1. The entity has elected the fair value option for measuring the financial liability. On Dec. 31, 2021, the fair value of the bonds is determined to be P 1,064,600 due to market and interest factors. What is the interest expense for 2021?
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 1MC
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On Janaury 1, 2021, Eastern Corp. received P 1,077,200 for P 1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually every January 1 and July 1. The entity has elected the fair value option for measuring the financial liability. On Dec. 31, 2021, the fair
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