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How much is the carrying value of the investment on december

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Reference no: EM133185196

Question - On January 1, 2021, Herskin Company acquired a bond investment from Ryx for P1,079,854, a price to yield 8% interest payable annually every December 31 for five years. The instrument has a face value of P1,000,000 and a stated interest rate of 10%. SCT Company designated the instrument at amortized cost.

1. How much is the carrying value of the investment on December 31, 2022?

a. 1,066,242

b. 1,051,542

c. 1,035,665

d. 1,108,167

2) Using the same information in the preceding number, how much will be reported as interest revenue on December 31, 2023?

a. 100,000

b. 85,299

c. 84,123

d. 88,653.36

Reference no: EM133185196

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