The ZBD Co. had USD 1, 530, 000 balance on investment on January 1, 2015. The bonds are accounted for as a financial asset at fair value through profit or loss. The company has 1,500 bonds with face value of P1,000 that pay interest of 8% every March 1 and September 1 of each year until The investment’s fair value (dirty price) at year-end is USD1,525,000. What is the interest income recognized by ZBD Co for year 2015? Show solution and explanation.
The ZBD Co. had USD 1, 530, 000 balance on investment on January 1, 2015. The bonds are accounted for as a financial asset at fair value through profit or loss. The company has 1,500 bonds with face value of P1,000 that pay interest of 8% every March 1 and September 1 of each year until The investment’s fair value (dirty price) at year-end is USD1,525,000. What is the interest income recognized by ZBD Co for year 2015? Show solution and explanation.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 8E
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The ZBD Co. had USD 1, 530, 000 balance on investment on January 1, 2015. The bonds are accounted for as a financial asset at fair value through profit or loss. The company has 1,500 bonds with face value of P1,000 that pay interest of 8% every March 1 and September 1 of each year until The investment’s fair value (dirty price) at year-end is USD1,525,000. What is the interest income recognized by ZBD Co for year 2015? Show solution and explanation.
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