What is the carrying amount of the bond investment

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Reference no: EM132977776

Question: On January 1, 2021, Quezon Company purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semiannually January 1 and July 1. The bonds were acquired to yield 8%. Present value factors are:

PV of an annuity of 1 for 5 periods at 10% 3.79
PV of an annuity of 1 for 5 periods at 8% 3.99
PV of an annuity of 1 for 10 periods at 5% 7.72
PV of an annuity of 1 for 10 periods at 4% 8.11
PV of 1 for 10 periods at 4% 0.6756
PV of 1 for 10 periods at 5% 0.6135
PV of 1 for 5 periods at 10% 0.6207
PV of 1 for 5 periods at 8% 0.6804

What is the carrying amount of the bond investment on December 31, 2021?

Reference no: EM132977776

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