On January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063, 394, a price that yields 10%. The bonds mature on December 31, 2022. On April 1, 2021, to pay the maturing obligation, Odeng sold P600,000 face value bonds at 101 plus accrued interest. The market value of the bonds on December 31, 2019, 2020 and 2021, respectively are: 108, 106 and 104. If the entity classified the investment at fair value through profit or loss, how much is the bond investment on December 31, 2020? * G O P1,000,000 O P1,018,177 O P1,060,000 O P1,034,706
On January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063, 394, a price that yields 10%. The bonds mature on December 31, 2022. On April 1, 2021, to pay the maturing obligation, Odeng sold P600,000 face value bonds at 101 plus accrued interest. The market value of the bonds on December 31, 2019, 2020 and 2021, respectively are: 108, 106 and 104. If the entity classified the investment at fair value through profit or loss, how much is the bond investment on December 31, 2020? * G O P1,000,000 O P1,018,177 O P1,060,000 O P1,034,706
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong
Company for P1,063, 394, a price that yields 10%. The bonds mature on December 31, 2022.
On April 1, 2021, to pay the maturing obligation, Odeng sold P600,000 face value bonds at
101 plus accrued interest. The market value of the bonds on December 31, 2019, 2020 and
2021, respectively are: 108, 106 and 104. If the entity classified the investment at fair value
through profit or loss, how much is the bond investment on December 31, 2020? * G
O P1,000,000
O P1,018,177
O P1,060,000
O P1,034,706
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