The carrying amount of the bonds as of December 31, 2022 is: 2. The amount to be allocated to the share warrants is:
On April 1, 2021, Zamboanga City issued P8,000,000 of 12% bonds payable maturing in 5 years. The bonds are dated January 1 and pay interest semi-annually on June 30 and December 31. The bonds include share warrants giving the bondholder the right to purchase 16,000, P100 par value shares for P150 per share within the next three years. The bonds and warrants were issued at 125 including accrued interest. The market value of the warrants at the time of issuance was P1,500,000. The market rate of interest for similar bonds without the warrants is 10%.
1. The carrying amount of the bonds as of December 31, 2022 is:
2. The amount to be allocated to the share warrants is:
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