On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92....

 

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On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid broker's fees and non-refundable taxes amounting to P118,896. As a result, yield rate on the bond was 9%. Interests are collectible annually every May 31. The bonds were selling at 120, 105, 98 as of December 31, 2019, December 31, 2020 and December 31, 2021; respectively. On September 30, 2021, YODA sold P250,000 face value bonds for a total cost of P280,000. Answer the following questions assuming the company classifies the investment as financial asset at fair value through other comprehensive income: How much is the interest income for year ended 2020? 54,201 100,000 93,160 58,333 On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid broker's fees and non-refundable taxes amounting to P118,896. As a result, yield rate on the bond was 9%. Interests are collectible annually every May 31. The bonds were selling at 120, 105, 98 as of December 31, 2019, December 31, 2020 and December 31, 2021; respectively. On September 30, 2021, YODA sold P250,000 face value bonds for a total cost of P280,000. Answer the following questions assuming the company classifies the investment as financial asset at fair value through other comprehensive income: How much is the interest income for year ended 2020? 54,201 100,000 93,160 58,333

Answer rating: 100% (QA)

Solution The correct answer is 93160 Explanation bonds bought on June 1 2019 ... View the full answer