On January 1,2019, DELO Company purchased 456B Corporation, 9% bonds with a face value of P4,000,000 for P3,756,000. The debt investments are carried at amortized cost. The debt investments are carried at the amortized cost. The effective interest rate at that time is 10%. The bonds are dated January 1, 2019 and mature on December 31,2028. The bonds pay interest annually on December 31. Market quotation for the debt investment at December 31,2019 is 99. What is the interest revenue for the year 2019?
On January 1,2019, DELO Company purchased 456B Corporation, 9% bonds with a face value of P4,000,000 for P3,756,000. The debt investments are carried at amortized cost. The debt investments are carried at the amortized cost. The effective interest rate at that time is 10%. The bonds are dated January 1, 2019 and mature on December 31,2028. The bonds pay interest annually on December 31. Market quotation for the debt investment at December 31,2019 is 99. What is the interest revenue for the year 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1,2019, DELO Company purchased 456B Corporation, 9% bonds with a face value of P4,000,000 for P3,756,000. The debt investments are carried at amortized cost. The debt investments are carried at the amortized cost. The effective interest rate at that time is 10%. The bonds are dated January 1, 2019 and mature on December 31,2028. The bonds pay interest annually on December 31. Market quotation for the debt investment at December 31,2019 is 99.
What is the interest revenue for the year 2019?
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