Find what is the entry on december to record the retirement

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Reference no: EM132700735

On january 1 20x1 an entity issues vonds with face amount of P 4 000,000 for P 3 784 798. The bonds mature on December 31 20x4 and pay annual interest of 16%. The effective interest rate is 18%. On december 31 20x2 after paying the annual interest the entity retires the bonds at a call premium of P 200,000. the entity is subject to income tax rate of 30%.

Requirements:

Problem A. what is the entry on December 31 20x2 to record the retirement of the bonds.

Reference no: EM132700735

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