On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA Company for ₱4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income on the bonds? A. ₱ 160,000 B. ₱ 169,657 C. ₱ 170,824 D. ₱ 340,481

Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…

A: Formulas that are used:-

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A:

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A:

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A:

Q: uming that the compan

A: As per protocol, allowed to answer first question and post the remaining in the next submission.

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A: Recognized income=Selling price-Purchase price

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A: