On January 1, 2021, ABC Co. acquired P2,000,000 face amount, 10% bonds for P1,903,927. The bonds...

 

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On January 1, 2021, ABC Co. acquired P2,000,000 face amount, 10% bonds for P1,903,927. The bonds were measured at amortized cost. The principal Is due on January 1, 2024 but Interest payments are due annually every December 31. The effective interest rate is 12%. On December 31, 2022, the Investee entered Into a corporate rehablitation program resulting In the extenslon of the maturity of the bonds to January 1, 2026. ABC sees this as a loss event. ABC estimates that only the face amount of the bonds will be collected, in lump-sum, on January 1, 2026. There Is no Interest recelvable as of December 31, 2022. The current market rate on December 31, 2022 Is 14%. The carrying amount of the Impalred financlal asset on December 31, 2022 Is* I P1,423,560 P2,000,000 P1,964,286 P1,932,398 On January 1, 2021, ABC Co. acquired P2,000,000 face amount, 10% bonds for P1,903,927. The bonds were measured at amortized cost. The principal Is due on January 1, 2024 but Interest payments are due annually every December 31. The effective interest rate is 12%. On December 31, 2022, the Investee entered Into a corporate rehablitation program resulting In the extenslon of the maturity of the bonds to January 1, 2026. ABC sees this as a loss event. ABC estimates that only the face amount of the bonds will be collected, in lump-sum, on January 1, 2026. There Is no Interest recelvable as of December 31, 2022. The current market rate on December 31, 2022 Is 14%. The carrying amount of the Impalred financlal asset on December 31, 2022 Is* I P1,423,560 P2,000,000 P1,964,286 P1,932,398

Answer rating: 100% (QA)

Answer The carrying amount of the impaired financial asset on December 31 2022 is 1423560 Explanatlo... View the full answer