On April 30, CHIA-SEED Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term and interest is payable semi-annually, May 1 and November 1. The entity elected the fair value option. The entity paid bond issue cost of ₱125,000. On December 31, 2021, the fair value of the bonds is 104. It is reliably determined that the fair value increase comprised of 25% attributable to credit risk and the remainder is attributable to change in market interest rate. What is the interest expense for the year ended December 31, 2021?
On April 30, CHIA-SEED Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term and interest is payable semi-annually, May 1 and November 1. The entity elected the fair value option. The entity paid bond issue cost of ₱125,000. On December 31, 2021, the fair value of the bonds is 104. It is reliably determined that the fair value increase comprised of 25% attributable to credit risk and the remainder is attributable to change in market interest rate. What is the interest expense for the year ended 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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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On April 30, CHIA-SEED Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term and interest is payable semi-annually, May 1 and November 1. The entity elected the fair value option. The entity paid bond issue cost of ₱125,000. On December 31, 2021, the fair
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