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How much is the carrying amount of investment on December

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Question - On December 31, 2019, PSJ Company purchased debt investments at amortized cost, P3,000,000 serial bonds with a nominal rate of 10% and effective rate at that time is 13%. Bonds with a face value of P1,000,000 mature on December 31, 2020 and every December 31 thereafter. Using three decimal places for the PV factor, what is the carrying amount of the debt investment on December 31, 2020?

On January 1, 2019, Kevin Co. acquired 12%, P4,000,000 bonds for P4,198,948.  The principal is due on December 31, 2021 but interest is made annually starting December 31, 2019. The effective interest rate on the bonds is 10%. How much is the carrying amount of the investment on December 31, 2019?

Reference no: EM133001350

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