On January 1, 2018, Arabian Company purchased serial bonds with face amount of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial assets at amortized cost with 10% effective yield. The bonds mature at annual installment of P1,000,000 every December 31. The rounded present value of 1 at 10% for. One period Two periods 0.83 Three periods 0.75 0.91 What is the present value of the serial bonds on January 1, 2018? a. 3,106,800 b. 3,060,000 C. 3,045,000 d. 3,149,000

On January 1, 2018, Arabian Company purchased serial bonds with face amount of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial assets at amortized cost with 10% effective yield. The bonds mature at annual installment of P1,000,000 every December 31. The rounded present value of 1 at 10% for. One period Two periods 0.83 Three periods 0.75 0.91 What is the present value of the serial bonds on January 1, 2018? a. 3,106,800 b. 3,060,000 C. 3,045,000 d. 3,149,000

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter10: Long-term Liabilities

Section: Chapter Questions

Problem 10.16MCE

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