On January 1, 2020, EF company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2020, each bonds is selling at P1,055. If the debt investments is classified as at amortized cost, what is the interest revenue from the bond investment for the year 2020?
On January 1, 2020, EF company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2020, each bonds is selling at P1,055. If the debt investments is classified as at amortized cost, what is the interest revenue from the bond investment for the year 2020?
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 January 1, 2020, EF company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2020, each bonds is selling at P1,055.
If the debt investments is classified as at amortized cost, what is the interest revenue from the bond investment for the year 2020?
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