On April 30, 2020, ABC acquired an investment in bonds which has a face value...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On April 30, 2020, ABC acquired an investment in bonds which has a face value of P5,000,000 and pays 9% interest due every April 30 and Oct. 30 until Oct. 30, 2024. It paid P4,822,305 inclusive of transaction fees of P11,804. The resulting effective interest rate on this transaction is 10%. It accounted the investment as a financial asset at amortized cost.
If on Nov. 30, 2021, ABC sold the investment, what is the interest income for that year?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.