On July 1,2020, Conair Company paid P1,198,000 for 10% bonds with a face mount of PI000000 to beheld as financial assets at amortized cost. hterest is paid on June 30 and December 31. The bonds were purchased to yield 8%. Conair uses the effective interest method to recognize interest income from this nvestment. What should be reported as the carrying amount of the bonds in Conair's December31,2020 statement of financialposition? D. 1207,900 c. 1,195,920 d. 1,193,050
On July 1,2020, Conair Company paid P1,198,000 for 10% bonds with a face mount of PI000000 to beheld as financial assets at amortized cost. hterest is paid on June 30 and December 31. The bonds were purchased to yield 8%. Conair uses the effective interest method to recognize interest income from this nvestment. What should be reported as the carrying amount of the bonds in Conair's December31,2020 statement of financialposition? D. 1207,900 c. 1,195,920 d. 1,193,050
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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Conair
![10. On July 1,2020, Conair Company poid P1,198,000 for 10% bonds with o face
amount of P1.000000to be held as financial assets at amortized cost. nterest is
paid on June 30 and December 31. Thebonds were purchased to yield 8%.
Conair uses the effective interest method to recognize interest income from this
investment. Whatshould be reported as the carying anmount of the bonds in
Conair's December 31,2020 statement of financial position?
c. 1,195,920
d. 1,193,050
o. 1207,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81f6423e-114e-459e-9779-f97243127a0a%2F7fff8474-3ed1-4161-8e78-4377bc44b9e8%2Fzwi00rp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10. On July 1,2020, Conair Company poid P1,198,000 for 10% bonds with o face
amount of P1.000000to be held as financial assets at amortized cost. nterest is
paid on June 30 and December 31. Thebonds were purchased to yield 8%.
Conair uses the effective interest method to recognize interest income from this
investment. Whatshould be reported as the carying anmount of the bonds in
Conair's December 31,2020 statement of financial position?
c. 1,195,920
d. 1,193,050
o. 1207,900
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