PROBLEM 15-2 Acquisition of FAAC Term Bonds in Between Inter. On April 1, 2016, Buguias Co. acquired 4-year bonds with a fa P2,000,000 and stated interest of 10% per year payable annually o 31. The bonds were acquired to yield 12%. The bonds are to be ap classified as financial asset at amortized cost. Questions: Based on the above data, answer the following: (Round off present to four decimal places) 1. How much is the purchase price of bonds on April 1,2016? P1,884,814 b. P1,878,460 c. P1,834,814 d. P1,934,814 a. 2. How much is the interest income for 2016? c. P173,911 d. P85,578 a. P150,000 b. P169,061
PROBLEM 15-2 Acquisition of FAAC Term Bonds in Between Inter. On April 1, 2016, Buguias Co. acquired 4-year bonds with a fa P2,000,000 and stated interest of 10% per year payable annually o 31. The bonds were acquired to yield 12%. The bonds are to be ap classified as financial asset at amortized cost. Questions: Based on the above data, answer the following: (Round off present to four decimal places) 1. How much is the purchase price of bonds on April 1,2016? P1,884,814 b. P1,878,460 c. P1,834,814 d. P1,934,814 a. 2. How much is the interest income for 2016? c. P173,911 d. P85,578 a. P150,000 b. P169,061
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pls answer number 1 and 2. Show your solution
Transcribed Image Text:On April 1, 2016, Buguias Co. acquired 4-year bonds with a face value i
PROBLEM 15-2 Acquisition of FAAC Term Bonds in Between Interest Dats
P2,000,000 and stated interest of 10% per year payable annually on Decem
31. The bonds were acquired to yield 12%. The bonds are to be appropræz;
P2,000,000 and stated interest of 10% per year payable annually on Deca
31. The bonds were acquired to yield 12%. The bonds are to be appror
classified as financial asset at amortized cost.
Questions:
Based on the above data, answer the following: (Round off present value fa
to four decimal places)
How much is the purchase price of bonds on April 1,2016?
P1,884,814
b. P1,878,460
1.
c. P1,834,814
d. P1,934,814
a.
2.
How much is the interest income for 2016?
P150,000
b. P169,061
c. P173,911
d. P85,578
a.
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