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What is the carrying amount of investment on december

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On May 1, 2019, Lucky Company purchased 12% P3,000,000 face value bonds for P3,360,000 plus transaction costs of P120,000 to be held as financial assets at amortized cost. Interest is payable semiannually on May 1 and November 1.The bonds will mature on May 1, 20 Lucky Company sold all the bonds on August 31, 2020 at 97 pus accrued interest. The entity adopt the calendar year and uses the straight line method of amortization.

Problem a. What amount should be recognized as investment income for 2020?

Problem b. What is the carrying amount of investment on December 31, 2020?

Problem c. What total amount of income should eb reported for 2021?

Reference no: EM132703123

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