On January 1, 2022, Isabel Company purchased bonds with face amount of P8,000,000 for P7,679,000 to be held maturity. The stated rate on the bonds is 10% but the bonds are acquired to yield 12%. The bonds mature at the rat of P2,000,000 annually every December 31 and the interest is payable annually also every December 31. The entit used the effective interest method of amortizing discount. What is the carrying amount of the bond investment o December 31, 2022? A. 5,759,250 3. 7,759,250 E 7,800,480

On January 1, 2022, Isabel Company purchased bonds with face amount of P8,000,000 for P7,679,000 to be held maturity. The stated rate on the bonds is 10% but the bonds are acquired to yield 12%. The bonds mature at the rat of P2,000,000 annually every December 31 and the interest is payable annually also every December 31. The entit used the effective interest method of amortizing discount. What is the carrying amount of the bond investment o December 31, 2022? A. 5,759,250 3. 7,759,250 E 7,800,480

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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