What amount should be reported as bond interest expensed

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Question - On January 1, 2020, Herbert Company, an SME, issued its 10 percent bonds payable in the face amount of P6,000,000. The bonds mature on January 1, 2040. The bonds were issued for P5,316,000 to yield 12 percent resulting in bond discount of P684,000. Herbert uses the effective interest method of amortizing bond discount. Interest is payable semiannually January 1 and July 1. For the six months ended June 30, 2020, what amount should be reported as bond interest expensed?

Reference no: EM133141518

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