FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1, Martinez Inc. issued P 4,000,000, 11% bonds for P 4,260,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium. At the end of the second year, Martinez should report unamortized bond premium of
a. P 246,840
b. P 246,000
c. P 231,400
d. P 230,600
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