On April 1, 2021, Eminem Company purchased 4,000 of the P1,000 face amount, 8% bonds of Stan Company for P3,692,000 to yield 10% per annum. The bonds, which mature on April 1, 2026, pay interest semiannually on April 1 and October 1. Eminem classifies the securities as at amortized cost. What is the investment carrying value at December 31, 2021?

On April 1, 2021, Eminem Company purchased 4,000 of the P1,000 face amount, 8% bonds of Stan Company for P3,692,000 to yield 10% per annum. The bonds, which mature on April 1, 2026, pay interest semiannually on April 1 and October 1. Eminem classifies the securities as at amortized cost. What is the investment carrying value at December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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