Stephen Corporation is authorized to issue P10,000,000 of 5-year bonds dated June 30, 2020 with a stated interest rate of 9%. Interest on the bonds is payable semiannually on June 30 and December 31. The company uses the effective interest method of amortization. The bonds were sold to yield 8%. Present value factor of P1 lumpsum using 4% for 10 periods is .6756 Present value factor of P1 ordinary annuity using 4% for 10 periods is 8.1109

What is the carrying value of the bonds at December 31, 2020?

P9,627,859

b.

P10,439,669

c.

P9,955,905

d.

P10,372,141