On January 1, 2019, Rio Company 3 points purchased 4,000 of P1,000 face value, 10% bonds of Flamingo Company for P4,270,600. The company has a business model of holding the financial asset to collect contractual cash flows and to sell the financial asset. The bonds will mature on January 1, 2023 pay interest semi annually on January 1 and July 1. Bonds effective interest rate is 8%. In its December 31, 2019 income statement, how much should Rio report as interest income on the bonds? 160,000 169,657 170,824 340,480

On January 1, 2019, Rio Company 3 points purchased 4,000 of P1,000 face value, 10% bonds of Flamingo Company for P4,270,600. The company has a business model of holding the financial asset to collect contractual cash flows and to sell the financial asset. The bonds will mature on January 1, 2023 pay interest semi annually on January 1 and July 1. Bonds effective interest rate is 8%. In its December 31, 2019 income statement, how much should Rio report as interest income on the bonds? 160,000 169,657 170,824 340,480

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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