On January 2, 2021, A Corporation offers to sell a P100,000 bond coming due in 10 years. The bond pays interest of 4% at the end of each year. A Corporation finds a buyer who wants to earn 7% each year, and agrees to the 7% rate at a sales price of P80,000. On the December 31, 2021 balance sheet, what amount is reported for the liability of this bond? A) 93,000 B) 83,200 с) 85, 600 D) 96,000

On January 2, 2021, A Corporation offers to sell a P100,000 bond coming due in 10 years. The bond pays interest of 4% at the end of each year. A Corporation finds a buyer who wants to earn 7% each year, and agrees to the 7% rate at a sales price of P80,000. On the December 31, 2021 balance sheet, what amount is reported for the liability of this bond? A) 93,000 B) 83,200 с) 85, 600 D) 96,000

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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