PT ABC purchased Rp300.000 of 8%, 5-year bonds from PT DEF on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for Rp312.474 at an effective interest rate of 7%. Using the effective interest method, PT ABC decreased the non-trading Debt Investments account for the PT DEF bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of Rp1.062 and Rp1.098, respectively. At December 31, 2018, the fair value of the PT DEF bonds was Rp318.000. What should PT ABC report as other comprehensive income and as a separate component of equity? *

PT ABC purchased Rp300.000 of 8%, 5-year bonds from PT DEF on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for Rp312.474 at an effective interest rate of 7%. Using the effective interest method, PT ABC decreased the non-trading Debt Investments account for the PT DEF bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of Rp1.062 and Rp1.098, respectively. At December 31, 2018, the fair value of the PT DEF bonds was Rp318.000. What should PT ABC report as other comprehensive income and as a separate component of equity? *

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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