On September 1, 2019, PT ABC purchased 600 of the Rp1.000 face value, 9% bonds of PT DEF for Rp625.000 (an 8% effective interest rate). The bonds, which mature on September 1, 2024, pay interest semiannually on March 1 and September 1. Assuming that ABC uses the effective interest method of amortization and that the bonds are appropriately classified as non-trading, the net carrying value of the bonds should be shown on PT ABC's December 31, 2019, statement of financial position at: Rp625.000. O Rp623.667. O Rp622.333. O Rp600.000.

On September 1, 2019, PT ABC purchased 600 of the Rp1.000 face value, 9% bonds of PT DEF for Rp625.000 (an 8% effective interest rate). The bonds, which mature on September 1, 2024, pay interest semiannually on March 1 and September 1. Assuming that ABC uses the effective interest method of amortization and that the bonds are appropriately classified as non-trading, the net carrying value of the bonds should be shown on PT ABC's December 31, 2019, statement of financial position at: Rp625.000. O Rp623.667. O Rp622.333. O Rp600.000.

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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