Answered: nds is 9% on December 31, 2020. Round…

nds is 9% on December 31, 2020. Round off present value factors to four (4). decimal places and final answers to the nearest peso. If the investment is classified as financ

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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Question

On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's commission of P20,000.) Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing parget rate for the bonds is 9% on December 31, 2020. Round off present value factors to four (4). decimal places and final answers to the nearest peso.

If the investment is classified as financial asset as financial asset at fair value through comprehensive income, determine the amount to be recognized in 2020 other comprehensive income.

A. 47, 513

B. 76,088

C. 12,891

D. 8,575

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