How much was the total amount of cash paid for retirement

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On December 31, 2015, the liability section of Texas Company's statement of financial position included bonds payable of P10 million and unamortized premium on bonds payable of P180, 000. Further verification revealed that these bonds were issued on December 31, 2013 and will become due on December 31, 2023. Interest at 12% is payable every June 30 and December 31.

On April 1, 2016, Texas retired P4, 000,000 of these bonds at 97 plus accrued interest.

Question 1: How much was the total amount of cash paid for the retirement of bonds on April 1, 2016?

a. P 3,950,000

b. P 4,000,000

c. P 4,040,000

d. P 4,180,000

Reference no: EM132577981

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