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What the amount of income durable should report

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Problem 1: On July 1, 2002, Durable Company purchased Rose Corporation 10-year, 12% bonds with face value of P300,000 for P324,000, which included P12,000 of accrued interest. The bonds, which mature on March 1, 2009, pay interest semi-annually on March 1 and September 1. Durable appropriately uses the straight line method of amortization. The amount of income Durable should report for the calendar year 2002 as a result of this long-term investment?

a) P16,200

b) P17,100

c) P18,000

d) P30,000

 

Reference no: EM133009513

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