Solution-How much is the estimated purchase price of the

How much is the estimated purchase price of the bonds

Reference no: EM132953317

Question - On January 1, 20x1, Washing Co. contemplates on acquiring P3,000,000, 10% bonds to be classified as investment measured at amortized cost. Principal on the bonds will mature in four semi-annual installments as follows: July 1, 20x1 1,200,000 December 31, 20x1 800,000 July 1, 20x2 600,000 December 31, 20x2 400,000 Total 3,000,000 Interest on the outstanding principal balance is also due semi- annually. The effective rate on January 1, 20x1 is 12%. How much is the estimated purchase price of the bonds on January 1, 20x1?

Reference no: EM132953317

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How much is the estimated purchase price of the bonds

Reference no: EM132953317

Reference no: EM132953317

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