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At the beginning of 2020, Leira Corporation issued 10% bonds with a face value of P 1,500,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for P 1,389,600 to yield 12%. Waley uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2021? (Round your answer to the nearest dollar.)  a. P 172,081 b. P 167,255 c. P 166,750 d. P 169,387

At the beginning of 2020, Leira Corporation issued 10% bonds with a face value of P 1,500,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for P 1,389,600 to yield 12%. Waley uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2021? (Round your answer to the nearest dollar.)  a. P 172,081 b. P 167,255 c. P 166,750 d. P 169,387

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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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At the beginning of 2020, Leira Corporation issued 10% bonds with a face value of P 1,500,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for P 1,389,600 to yield 12%. Waley uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2021? (Round your answer to the nearest dollar.) 


a. P 172,081
b. P 167,255
c. P 166,750
d. P 169,387

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