Question
115. On June 1, 2016, ABC Corporation purchased as a long-term investment of 4,000 of the P1,000 face value, 8% bonds of DEF Corporation for
115. On June 1, 2016, ABC Corporation purchased as a long-term investment of 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.
The gain on sale of investment in bonds on November 1, 2017 is?
- P80, 235
- Answer not given
- P104,045
- P21,195
- P27, 632
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
