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Question - On January 1, 2023, Icefrog Company purchased 4,000 of P1,000 face value, 10% bonds of Guinsoo Company for P4,270,600. The bonds will mature on January 1, 2024 pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. Icefrog Company measures its investment at amortized cost. In its December 31, 2023 profit or loss, how much should Icefrog Company report as interest income on the bonds?
A. P170,824
B. P169,657
C. P340,481
D. P160,000
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