Question
need this ASAP, will upvote. thanks! 1. On January 1, 20x1, Mitch Co. acquired 12%, P4,000,000 bonds at 98. Commission paid to brokers amounted to
need this ASAP, will upvote. thanks!
1. On January 1, 20x1, Mitch Co. acquired 12%, P4,000,000 bonds at 98. Commission paid to brokers amounted to P204,000, Principal is due on December 31, 20x4 but interest payments are made annually starting December 31, 20x1. The adjusted effective interest rate on the investment is closest to*
A. 11% B. indeterminable C. 10.2650% D. 12%
2. On January 1, 20x1, Entity A acquires 25% interest in Entity B for P800,000. Entity B reports profit of P1,000,000 and declares dividends of P100,000 in 20x1. How much is the carrying amount of the investment in associate on December 31, 20x1?
A. 1,250,000 B. 1,000,000 C. 800,000 D. 1,025,000
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