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Question - A P3,000,000 bond with a stated rate of 12% issued last January 1, 2020, yields an interest of 10%. The bond mature on every December 31 of each year at the rate of P1,000,000 for 3 years. The interest is payable annually on December 31. (Use four decimal places in computing PV factors.)
1. What is the present value of the bond at January 1, 2020?
2. How much is the premium on bonds payable?
3. What is the amount of interest paid at December 31, 2020?
4. What is the amount of interest expense reported at December 31, 2021?
5. What is the carrying amount at December 31, 2021?
Question - High-low method - Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost
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