What is the carrying amount of the investment at the end of the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Accounting
At the beginning of the current year, Charlie
Company acquired bonds with face amount of
P3,000,000 at a cost of P2,820,750. The bonds
are held for trading.
Bonds pay interest of 12% semiannually on
January 1 and July 1 and mature on January 1,
2023.
The bonds have an effective yield of 14% and
are quoted at 105 at year end.
What is the carrying amount of the investment
at the end of the current year?
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