How much is the carrying amount of investment on December

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Question - On January 1, 20x1, PAR Incorporated acquired 10%, P1,000,000 bonds for P827,135. The bonds mature on December 31, 20x3 and pay annual interest every December 31. PAR Incorporated incurred transaction costs of P80,000 on the acquisition. The effective interest rate adjusted for the effect of the transaction costs is 14%.

The bonds are to be held under a "hold to collect and sell" business model. Information on fair value is as follows:

December 31, 20x1 98

December 31, 20x2 102

December 31, 20x3 100

Required - How much is the carrying amount of the investment on December 31, 20x1?

Reference no: EM132939015

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