Question
Carnation Company purchased a P5,000,000 12% face value bonds, 10 years, on May 1, 2020 for P5,122,200. The bonds are dated May 1, 2020 with
Carnation Company purchased a P5,000,000 12% face value bonds, 10 years, on May 1, 2020 for P5,122,200. The bonds are dated May 1, 2020 with interest payable May 1 and November 1. Bond premium is amortized following the effective interest method. The effective interest rate is 11%. What is the total amortization of discount for the year 2020?
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Advanced Accounting
Authors: Debra C Jeter, Paul K Chaney
5th Edition
1118022297, 978-1118022290
