On January 1, 2021, Mirakulo Company acquired P4,000,000 of 12% face amount bonds for P3,767,000 to be held as financial assets at amortized cost with a 14% effective yield. Interest on bonds is payable annually on December 31 and bond mature on January 1, 2025. The effective interest method of amortization is used. What is the carrying amount of the bond investment on December 31, 2021?

On January 1, 2021, Mirakulo Company acquired P4,000,000 of 12% face amount bonds for P3,767,000 to be held as financial assets at amortized cost with a 14% effective yield. Interest on bonds is payable annually on December 31 and bond mature on January 1, 2025. The effective interest method of amortization is used. What is the carrying amount of the bond investment on 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 1MC

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