.On Jan 2, 20X1, ABC Company acquired 3,000 12%  3-year P1,000 bonds of Z Corp. at P2,860,702. Effective rate was 14%. ABC designated this investment at amortized cost.  How much is the interest income at Dec 31, 20X1?     343,284 360,000 400,498 420,000

Principles of Accounting Volume 1
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Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6EA: Oak Branch Inc. issued $700,000 of 5%, 10-year bonds when the market rate was 4%. They received...
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38.On Jan 2, 20X1, ABC Company acquired 3,000 12%  3-year P1,000 bonds of Z Corp. at P2,860,702. Effective rate was 14%. ABC designated this investment at amortized cost. 
How much is the interest income at Dec 31, 20X1?
 
 
343,284
360,000
400,498
420,000
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