On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated interest of 10% per year payable annually on December 31. The bonds were acquired to yield 12%. The...

On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated interest of 10% per year payable annually on December 31. The bonds were acquired to yield 12%. The bonds are to be appropriately classified as financial asset at amortized cost.How much interest income did Padayon Co. earn for 2019? *

a. 94,849

b. 96,190

c. 97,531

d. 100,214