On April 1, 2021, Eminem Company purchased 4,000 of the P1,000 face amount, 8% bonds of Stan Company for P3,692,000 to yield 10% per annum. The bonds, which mature on April 1, 2026, pay interest semiannually on April 1 and October 1. Eminem classifies the securities as at amortized cost. What is the investment carrying value at December 31, 2021?

On April 1, 2021, Eminem Company purchased 4,000 of the P1,000 face amount, 8% bonds of Stan Company for P3,692,000 to yield 10% per annum. The bonds, which mature on April 1, 2026, pay interest semiannually on April 1 and October 1. Eminem classifies the securities as at amortized cost. What is the investment carrying value at December 31, 2021?

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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