On July 1, 2002, AXIE Company purchased Rose Corporation 10-year, 12% bonds with face value of P300,000 for P324,000, which included P12,000 of accrued interest. The bonds, which mature on March 1, 2009, pay interest semi-annually on March 1 and September 1. AXIE appropriately uses the straight line method of amortization. The amount of income AXIE should report for the calendar year 2002 as a result of this long-term investment? P16,200 P17,100 P18,000 P30,000

On July 1, 2002, AXIE Company purchased Rose Corporation 10-year, 12% bonds with face value of P300,000 for P324,000, which included P12,000 of accrued interest. The bonds, which mature on March 1, 2009, pay interest semi-annually on March 1 and September 1. AXIE appropriately uses the straight line method of amortization. The amount of income AXIE should report for the calendar year 2002 as a result of this long-term investment? P16,200 P17,100 P18,000 P30,000

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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