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What amount of interest income should Siver Company report

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Problem - On January 2 2019, Silver Company invested in a 4-year 10% bond with a face value of P3,000,000 in which interest in to be paid every December 31. The bonds have an effective interest rate of 8%% and was acquired for P3, 198,650 Siver Company classified the bonds as investment of amortized cost On December 31, 2021, Silver Company sold the bonds at the prevailing rate of 12% and incurred total transaction cost of P45:000. What amount of interest income should Siver Company report in its 2021 statement of income?

Reference no: EM132858802

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