How much is the carrying value of investment

Reference no: EM132970288

Question: On January 1,2019, ACT 185 company purchased a 5-year bonds with a face value of P 10,000,000 and stated interest of 10% per year payable semi- annually every June 30 and December 31. The bonds were acquired to yield 8%. On April 30,2021, ACT 185 Company sold all the bonds at 108 plus accrued interest. Quoted price of the bonds on different dates are as follows:

December 31,2019 - 105,
December 31,2020- 106
December 31,2021- 105.5
December 31,2022- 107
December 31,2023- 107.5

If the debt investment is held for the purpose of solely for collection of principal and interest until maturity date, how much is the carrying value of investment as of December 31,2021 assuming half of the bonds are sold on April 30,2021?

Reference no: EM132970288

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