On July 1, 2014, Oladipo Corporation issued 11% bonds in the face amount of P2,000,000 that mature on June 30, 2018. The bonds were issued to yield 10% and interest is payable every January 1 and July...

On July 1, 2014, Oladipo Corporation issued 11% bonds in the face amount of P2,000,000 that mature on June 30,

2018. The bonds were issued to yield 10% and interest is payable every January 1 and July 1. Oladipo uses the effective

interest method of amortizing bond premium and discount. What is the carrying amount of the bonds as of December

31, 2014?

A. 2,043,640 B. 2,051,086 C. 2,057,863 D. 2,064,930