On January 1, 2020, Davao Company issued 6% bonds with 3. What is the carrying amount of the bonds payable on price that yields 8%. Interest is payable annually every Problem 5-22 (AICPA Adapted) face amount of P4,000,000 for net proceeds of P3,677,600.. December 31. The entity elected the fair value option. On December 31. 2020, the bonds are quoted at 95. 1. What amount should be reported as interest expense for 2020? a. 240,000 b. 120,000 c. 294,208 d. 220,656 2. What amount should be reported as gain or loss from change in fair value for 2020? a. 322,400 gain b. 322,400 loss c. 122,400 gain d. 122,400 loss December 31, 2020?. a. 3,677,600 b. 3,800,000 c. 3,493,720 d. 4,000,000

On January 1, 2020, Davao Company issued 6% bonds with 3. What is the carrying amount of the bonds payable on price that yields 8%. Interest is payable annually every Problem 5-22 (AICPA Adapted) face amount of P4,000,000 for net proceeds of P3,677,600.. December 31. The entity elected the fair value option. On December 31. 2020, the bonds are quoted at 95. 1. What amount should be reported as interest expense for 2020? a. 240,000 b. 120,000 c. 294,208 d. 220,656 2. What amount should be reported as gain or loss from change in fair value for 2020? a. 322,400 gain b. 322,400 loss c. 122,400 gain d. 122,400 loss December 31, 2020?. a. 3,677,600 b. 3,800,000 c. 3,493,720 d. 4,000,000

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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