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How much is the purchase price of bonds on april

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Reference no: EM132756901

On April 1, 2018, Karen Company acquired a 4-year bonds with a face value of Php 2,000,000 and with a stated interest rate of 10% per year payable annually on December 31. The bonds were acquired to yield a 12% interest and is to be accounted as financial asset at amortized cost.

Required: Based on the above, answer the following:

Problem 1: How much is the purchase price of bonds on April 1, 2018

Problem 2: How much is the interest income for 2018

Reference no: EM132756901

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