14. On Jan. 1, 20x1, Joe Satriani Co. purchased P6,000,000 face amount, 10% bonds at 96. Joe incurred transaction costs of P40,610 on the acquisition. The bonds mature in three equal annual installments every Dec. 31. Interest on the outstanding principal balance of the bonds is also due annually at each year-end. What is the effective interest rate and how much is the current portion of the bonds on Dec. 31, 20x1? c. 11%; 1,002,249 d. 12%; 1,932,398 a. 6%; 863,247 b. 9%; 932,341
14. On Jan. 1, 20x1, Joe Satriani Co. purchased P6,000,000 face amount, 10% bonds at 96. Joe incurred transaction costs of P40,610 on the acquisition. The bonds mature in three equal annual installments every Dec. 31. Interest on the outstanding principal balance of the bonds is also due annually at each year-end. What is the effective interest rate and how much is the current portion of the bonds on Dec. 31, 20x1? c. 11%; 1,002,249 d. 12%; 1,932,398 a. 6%; 863,247 b. 9%; 932,341
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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