on January 1, 2020, Puri OCompony purchosed P5,000,000 face vaue of Show Company's 8%bonds for P4,562,000 to be hekd as financialassets at armorized ost. ihe bonds were purchased to yield 10% interest. The bonds mature on January 1,2026 and pay interest annuaty on December 31. Purl uses the interest meinod of amortization. What amount should Purl report in its December 31,2020 staternent of financialposition for this investrment? Q. 4,680,020 b. 4,662000 C. 4,618,2000 d. 4,562000
on January 1, 2020, Puri OCompony purchosed P5,000,000 face vaue of Show Company's 8%bonds for P4,562,000 to be hekd as financialassets at armorized ost. ihe bonds were purchased to yield 10% interest. The bonds mature on January 1,2026 and pay interest annuaty on December 31. Purl uses the interest meinod of amortization. What amount should Purl report in its December 31,2020 staternent of financialposition for this investrment? Q. 4,680,020 b. 4,662000 C. 4,618,2000 d. 4,562000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Purl Company
![15. On January 1,2020, PuriCormpony pUrchosed P5,000,000 foce voue of Show
Company's 8% bonds for P4,562,000 to be held as financial assets at amortized
COST. The bonds were purchased to yield 10% interest. The bonds mature on
Sundary 1, 2026 and pay interest annuay on December31. Purl uses the interest
meinod of amortization. What amount should Purl report in its December 31,2020
staternent of financialposition for this investment?
Q. 4,680,020
b. 4,662000
C. 4,618,200
d. 4,562000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81f6423e-114e-459e-9779-f97243127a0a%2F607c7df9-6bb6-4d8d-ba33-f401a66f2014%2Fdjo9si7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:15. On January 1,2020, PuriCormpony pUrchosed P5,000,000 foce voue of Show
Company's 8% bonds for P4,562,000 to be held as financial assets at amortized
COST. The bonds were purchased to yield 10% interest. The bonds mature on
Sundary 1, 2026 and pay interest annuay on December31. Purl uses the interest
meinod of amortization. What amount should Purl report in its December 31,2020
staternent of financialposition for this investment?
Q. 4,680,020
b. 4,662000
C. 4,618,200
d. 4,562000
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