On January 1, 2022, Nine Company sold 12% bonds with a face value of P500,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for P538,500 to yield 10%. Nine uses the effective interest method of amortization. What is the interest expense for 2022?

On January 1, 2022, Nine Company sold 12% bonds with a face value of P500,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for P538,500 to yield 10%. Nine uses the effective interest method of amortization. What is the interest expense for 2022?

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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