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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

FINANCIAL ACCOUNTING
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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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
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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