with solution

On January 1, 2019, Tyson Company issues to its parent, Fury Company, 5.000.000 redeemable preference shares at P1.00 each for a cash consideration of P5.000.000 inclusive of transaction costs. The preference shares carry no fixed dividend payment and are redeemable at P1.00 each on January 1,2024. Based on Tyson's credit rating its current cost at the time of issue is 3% per annum. On December 31, 2019, it declares and pays a special dividend of P2.00 peshore What is the amortized cost of the redeemable preference shares of December 31, 2020 P5.000.000 P3.675.149 P3.969.161 402918