On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker’s commission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing market rate for the bonds is 9% at December 31, 2020. If the bonds are classified as FA@AC, the amount to be reported on the entity’s December 31, 2020 statement of financial position is a. P1,034,340 b. P1,035,630 c. P1,025,330 d. P1,017,610
On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker’s commission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing market rate for the bonds is 9% at December 31, 2020. If the bonds are classified as FA@AC, the amount to be reported on the entity’s December 31, 2020 statement of financial position is a. P1,034,340 b. P1,035,630 c. P1,025,330 d. P1,017,610
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 5RE
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Question
On January 1, 2020, Alaska Corporation purchased
P1,000,000 10% bonds for P1,051,510 (including broker’s
commission of P20,000). Interest is payable annually
every December 31. The bonds mature on December 31,
2022. The prevailing market rate for the bonds is 9% at
December 31, 2020.
If the bonds are classified as FA@AC, the amount to be
reported on the entity’s December 31, 2020
of financial position
a. P1,034,340
b. P1,035,630
c. P1,025,330
d. P1,017,610
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