On June 1, 2014, Roland Garros, Inc. purchased 8,000 of the P1,000 face value 8% bonds of Djokovic Corporation for P7,383,000. The bonds were purchased to yield 10% interest. Interest is payable semi-annually on Dec 1 and June 1. 

The bonds will mature on June 1, 2019. The management of Roland Garros classifies the investment as at amortized cost. On November 1, 2018, Roland Garros, Inc. sold the bonds for P7,850,000. This amount includes the appropriate accrued interest. The market value of the bond at the end of each reporting period follows December 31, 2014, 97 December 31, 2015, 99 December 31, 2016, 98 December 31, 2017, 96 15. 

What is the interest income?

Answer rating: 100% (QA)

P7383000 bonds were purchased at 1... View the full answer