What is the carrying value of the bonds as of december

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On July 1, 2020, Suarez Corporation issued 11% bonds in the face amount of P2,000,000 that mature on June 30, 2024. The bonds were issued to yield 5%, and the interest is payable every January 1 and July 1. Suarez Corporation used the effective interest method of amortizing bond premiun or discount. The following are the present value factors:

PV of 5% an ordinary annuity of P1 after 8 periods 6.463

PV of 5% after interest periods 3.677

Problem 1: What is the carrying value of the bonds as of December 31, 2020?

A. 2,043,640

B. 2,051,086

C. 2,058,176

D. 2,064,930

Reference no: EM132864991

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