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Fresh Company has outstanding 7%, 10-year, P2, 000,000 face value bond. The bond was originally sold to yield 6% annual interest. On June 30, 2014, the carrying amount of the outstanding bond was P2, 100,000.
Question 1: What amount of unamortized premium on bond should Fresh report in its June 30, 2015 statement of financial position?
a. P 86,000
b. P 114,000
c. P 126,000
d. P 140,000
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