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Find the gain on sale of investment in bonds on november

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Reference no: EM132583521

On June 1, 2016, ABC Corporation purchased as a long-term investment 4,000 of the P1,000 face value, 8% bonds of DEF Corporation for P3,645,328. Interest is payable semiannually on December 1 and June 1. The bonds mature on June 1, 2022. On November 1, 2017, ABC sold the bonds for a total consideration of P3,925,000. ABC intended to hold these bonds until they matured.

Question 1: The interest income for the year 2016 is

A. P211,612

B. P215,521

C. P212,829

D. P218,850

E. Answer not given

Question 2: The interest income for the year 2017 is

A. P304,748

B. P310,715

C. P311,218

D. P306,608

E. Answer not given

Question 3: The gain on sale of investment in bonds on November 1, 2017 is

A. P104,045

B. P27,632

C. P21,195

D. P80,235

E. Answer not given

Reference no: EM132583521

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