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4. On January 1, 20x1, SALIENT PROMINENT Co. issued 1,000, P4,000, 12%, 3-year bonds for P4,412,336. Principal is due on December 31, 20x3 but interests
4. On January 1, 20x1, SALIENT PROMINENT Co. issued 1,000, P4,000, 12%, 3-year bonds for P4,412,336. Principal is due on December 31, 20x3 but interests are due annually every year-end. In addition, SALIENT incurred bond issue cost of P213,388. The effective interest rate before adjustment for transaction costs is 8%. How much is the carrying amount of the note on December 31, 20x1? a. 4,019,832 b. 4,198,948 c. 4,288,776 d. 4,138,843
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds
6th Edition
78110890, 978-0078110894
