On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial asset at amortized cost with a 10% yield rate. The bonds mature at an annual installment of P1,000,000 every December 31. What is the present value of the serial bonds on January 1, 2014? (Round off the PV factor to two decimal places only) a. P3,106,800 b. P3,060,000 c. P3,045,000 d. P3,149,400

On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial asset at amortized cost with a 10% yield rate. The bonds mature at an annual installment of P1,000,000 every December 31. What is the present value of the serial bonds on January 1, 2014? (Round off the PV factor to two decimal places only) a. P3,106,800 b. P3,060,000 c. P3,045,000 d. P3,149,400

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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