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15. On Janvary 1,2020, ADra Company pulC! P5,000000 for P4,766000. The stated rate on the bonds is 10% but the bonds are ocquired to yield 12%, The bonds mature at the rate of P1.000,000 annually every December 31 and the interest is payable annualy also every December 31. The entity uses the effective interest method of amortizing disCount. Aura Compony shouid report the held to maturity bond investment on December 31,2020 at

15. On Janvary 1,2020, ADra Company pulC! P5,000000 for P4,766000. The stated rate on the bonds is 10% but the bonds are ocquired to yield 12%, The bonds mature at the rate of P1.000,000 annually every December 31 and the interest is payable annualy also every December 31. The entity uses the effective interest method of amortizing disCount. Aura Compony shouid report the held to maturity bond investment on December 31,2020 at

Intermediate Accounting: Reporting And Analysis
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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15. On Januory 1,2020, Auro Compony purchased bonds with foce voue of P5,000000 for P4,766000. the stated rate on the bonds is 10% but the bonds are aCcuired to yield 12%. The bonds mature of the rote of P1.000,000 annuoly every December 31 and the interest is payable annually also every December 31. The entity uses the effective interestmethod of omortizing disCount. Aura Compony shouid report the held to maturity bond investment on December 31,2020 at a. 4,766,000 b. 3694080 C. 4,837,920. d. 3837,920
Transcribed Image Text:15. On Januory 1,2020, Auro Compony purchased bonds with foce voue of P5,000000 for P4,766000. the stated rate on the bonds is 10% but the bonds are aCcuired to yield 12%. The bonds mature of the rote of P1.000,000 annuoly every December 31 and the interest is payable annually also every December 31. The entity uses the effective interestmethod of omortizing disCount. Aura Compony shouid report the held to maturity bond investment on December 31,2020 at a. 4,766,000 b. 3694080 C. 4,837,920. d. 3837,920
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