On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The bonds pay interest semiannually. The bonds include detachable stock warrants For the bondholder the right to purchase for P150 per share of P100 par value ordinary shares within the next three years. The bonds and warrants were issued at 120. The value of the warrants at the time of issuance was P800,000. The market rate of interest for similar bonds without the warrants is 10%. On December 31, 2022, the bonds payable should be reported at (round off present value factors to two decimal places)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The bonds pay interest semiannually. The bonds include detachable stock warrants For the bondholder the right to purchase for P150 per share of P100 par value ordinary shares within the next three years. The bonds and warrants were issued at 120. The value of the warrants at the time of issuance was P800,000. The market rate of interest for similar bonds without the warrants is 10%. On December 31, 2022, the bonds payable should be reported at (round off present value factors to two decimal places)

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