35.  On January 1, 2020, Knit Company purchased 8% bonds in the face amount of P8,000,000. The bonds mature on January 1, 2025 and were purchased for P8,671,680 to yield 6%. Knit’s business model for this investment is to collect contractual cash flows composed of principal and interest, and sell the asset in the open market. Interest is payable annually every December 31. The fair value of the bonds on December 31, 2020 was P7,737,600 with an effective yield of 9%. What is the interest income for 2020? a. 780,451 b. 513,119 c. 640,000 d. 520,301

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Q: interest inco

A:

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A:

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A:

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Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated…

A:

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