On October 1, 2021, Simplified Company purchased a 12% P3,000,000 face amount of bond issue for P2,700,000 excluding accrued interest to be held as financial asset at amortized cost. The date of the bonds is February 1, 2021 and the interest is payable semiannually on February 1 and August 1. The bonds mature annually at the rate of P1,000,000 on February 1, 2022 and every year thereafter. What is the amount of amortization on December 31, 2021?

On October 1, 2021, Simplified Company purchased a 12% P3,000,000 face amount of bond issue for P2,700,000 excluding accrued interest to be held as financial asset at amortized cost. The date of the bonds is February 1, 2021 and the interest is payable semiannually on February 1 and August 1. The bonds mature annually at the rate of P1,000,000 on February 1, 2022 and every year thereafter. What is the amount of amortization 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 5P

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