On January 2, 2021, A Corporation offers to sell a P100,000 bond coming due in 10 years. The bond pays interest of 4% at the end of each year. A Corporation finds a buyer who wants to earn 7% each...

On January 2, 2021, A Corporation offers to sell a P100,000 bond coming due in 10 years. The bond pays interest of 4% at the end of each year. A Corporation finds a buyer who wants to earn 7% each year, and agrees to the 7% rate at a sales price of P80,000. On the December 31, 2021 balance sheet, what amount is reported for the liability of this bond?

a. 96,000

b. 93,000