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On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature on January 01, 2030. The bonds were issued for P3,756,000 to yield 10%. ABC uses the effective interest method of amortizing the discount. Interest is payable annually on December 31. On December 31, 2021, how much should ABC's unamortized bond discount?

On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature on January 01, 2030. The bonds were issued for P3,756,000 to yield 10%. ABC uses the effective interest method of amortizing the discount. Interest is payable annually on December 31. On December 31, 2021, how much should ABC's unamortized bond discount?

FINANCIAL ACCOUNTING
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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On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature on January 01, 2030. The bonds were issued for P3,756,000 to yield 10%. ABC uses the effective interest method of amortizing the discount. Interest is payable annually on December 31. On December 31, 2021, how much should ABC's unamortized bond discount? O P244,000 O P228,400 O P211,240 O P192,364
Transcribed Image Text:On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature on January 01, 2030. The bonds were issued for P3,756,000 to yield 10%. ABC uses the effective interest method of amortizing the discount. Interest is payable annually on December 31. On December 31, 2021, how much should ABC's unamortized bond discount? O P244,000 O P228,400 O P211,240 O P192,364
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