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What is the carrying amount of the financial asset

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Problem - On January 1, 2018, Cane Company purchased bonds with a face value of P4,000,000 for P3,500,000 plus transaction costs of P211,618 with the business model of collecting contractual cash flows that are solely payments of principal and interest and to sell financial assets. The entity does not elect the fair value option in measuring financial assets. The bonds mature on December 31, 2020 and pay interest of 10% annually every December 31 with a 12% effective yield. What is the carrying amount of the financial asset on December 31, 2017?

Reference no: EM132986415

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