On January 1, 2020, Trader Company issued its 8%, 4 year convertible debt instrument with a face amount of P6,000,000 for P5,900,000. Interest is payable every December 31 of each year. The debt instruments is convertible into 50,000 ordinary shares a par value of P100. When the debt instruments were issued, the prevailing market rate of interest for similar debt without conversion option is 10%. PV of 10% for ordinary annuity of P1 after 4 periods 3.169865 PV of 10% after 4 interest period .683013   What is the amount of interest expense for the year ended December 31, 2021?   A. P561,962 B. P570,158 C. P579,173 D. P589,091

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A:

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A: Step 1 is for understanding initial Entries and Understanding the flow if you want Direct Answer…

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A: Answer:-  Unamortized discount meaning:- Unamortized bond discounts are the differences between a…

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A: Solution: Chart Values are based on:           n=  10   i=  10%   Cash Flow Table Value *…

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A: Formula:

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