What amount should grand company report on december

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Reference no: EM132816372

CARRYING VALUE OF BONDS

On January 1, Year 2, Grand Company purchased as held for collection investment P1,000,000 face value of Greek Company's 8% bonds for P912,400. The bonds were purchased to yield 10% interest. The bonds mature on January 1, Year 7, and pay interest annually on January 1.

Problem 1: What amount should Grand Company report on its December 31, Year 2 statement of financial position for held for collection investment?

A. P1,000,000

B. P 923,640

C. P 912,400

D. P 901,160

Reference no: EM132816372

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