On January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. If measured at amortized cost, how much is the carrying amount of investment in bonds on December 31, 2021?
On January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. If measured at amortized cost, how much is the carrying amount of investment in bonds on December 31, 2021?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds.
The bonds were purchased to yield 8% interest.
The bonds mature on January 1, 2026, and pay interest annually on December 31.
The entity used 2 decimal places for the PVF.
If measured at amortized cost, how much is the carrying amount of investment in bonds on December 31, 2021?
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