On October 2014, Nathan Company purchased a debt security having a face value of P 3,000,000 with an interest rate of 10% for P 3,200,000 including the accrued interest. A total of P 50,000 was incurred and paid by Nathan Co. Which is in relation to the acquisition of the debt instrument. Nathan Company has a business model that collects all contractual cash flows from interest and principal payments. The bonds mature on January 1, 2019, and pay interest semi- annually on January 1 and July1. On December 31, 2014, the bonds had a market value of P 3,400,000. What amount should Nathan Co. report for investment in debt securities?

On October 2014, Nathan Company purchased a debt security having a face value of P 3,000,000 with an interest rate of 10% for P 3,200,000 including the accrued interest. A total of P 50,000 was incurred and paid by Nathan Co. Which is in relation to the acquisition of the debt instrument. Nathan Company has a business model that collects all contractual cash flows from interest and principal payments. The bonds mature on January 1, 2019, and pay interest semi- annually on January 1 and July1. On December 31, 2014, the bonds had a market value of P 3,400,000. What amount should Nathan Co. report for investment in debt securities?

Name: 17.A.P 3,125,000B.P 3,175,000C.P 3,250,000D.P3,200,000 On October 2014
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Description: 17.A.P 3,125,000B.P 3,175,000C.P 3,250,000D.P3,200,000 On October 2014, Nathan Company purchased a debt security having aface value of P 3,000,000 with an interest rate of 10% for P 3,200,000including the accrued interest. A total of P 50,000 was inc

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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Your company has a project available with the following cash flows: Year 0 1 2345 Cash Flow -$80,900 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
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