At what amount should the investment be reported on january

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On January 1, 2021, NCT Corp. purchased 4-year bonds with a face value of P7,300,000 and a stated interest rate of 10% per year collectible every December 31. The bonds were acquired to yield 11%. These bonds were classified based on business model of profiting from short term changes in prices. NCT Corp. paid a total of P112,020 as directly attributable costs to purchase the debt investment. As a result the adjusted effective interest is 10.5%. On December 31, 2021 and December 31, 2022, the bonds were quoted at 104 and 102, respectively.

Problem 1:
At what amount should the investment be reported on January 1, 2021?

Reference no: EM132996093

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