What marvelous company should report interest income of

Reference no: EM132816366

On July 1, Year 2, Marvelous Company purchased P10million of West Company's 8% bonds due on July 1, Year 10. Based on the company's business model for the portfolio of investments, Marvelous designates the bonds as investments measured at amortized cost. The bonds, which pay interest semiannually on January 1 and July 1 were purchased for P8,750,000 to yield 10%

Problem 1: In its statement of comprehensive income for the year ended December 31, Year 2, Marvelous Company should report interest income of

A. P 350,000

B. P 400,000

C. P 437,500

D. P 500,000

Reference no: EM132816366

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