How much is the carrying amount of the bond on December

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Question - On the January 2020, An entity acquires a bond for P1,000, incurring transaction costs of P70. Interest of P80 is receivable annually, in arrears, over the next five years starting December 31, 2020. The bond has a mandatory redemption of P1,200 on December 31, 2024.

-How much is the initial carrying amount of the bond? a. P1,070 b. P930 c. P1,000 d. P1,200 

-How much is the interest income in 2020? (Round-off it into whole number) a. P73 b. P84 c. P92 d. P87108 

-How much is the carrying amount of the bond on December 31, 2020? a. P998 b. P1,093 c. P1,074 d. P1,104

Reference no: EM132969717

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