39. At the beginning of current year, Superman Company offers the customers a pottery cereal bowl if they send in three boxtops from the products and P10. The entity estimated that 60% of the boxtops would be redeemed. During the year, the entity sold 675,000 boxes and customers redeemed 330,000 boxtops receiving 110,000 bowls. The cost of each bowl is P25. What is the premium expense for the current year? *

a. 2,025,000

b. 6,075,000

c. 4,550,000

d. 1,650,000

40. Downing company issues P5,000,000, 6%, 5-year bonds dated January 1, 2016 on January 1, 2016. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? *

a. 5,000,000

b. 5,216,494

c. 5,217,308

d. 5,218,809