nds is 9% on December 31, 2020. Round off present value factors to four (4). decimal places and final answers to the nearest peso. If the investment is classified as financ

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 5P
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On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's commission of P20,000.) Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing parget rate for the bonds is 9% on December 31, 2020. Round off present value factors to four (4). decimal places and final answers to the nearest peso.

If the investment is classified as financial asset as financial asset at fair value through comprehensive income, determine the amount to be recognized in 2020 other comprehensive income.

A. 47, 513

B. 76,088

C. 12,891

D. 8,575

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