Page 38 Financial Accounting 1 6. Jen Corporation purchased bonds at a discount of P100000. Subsequently, Jen sold these bonds ot o premium of P140,000. During the period that Jen held ins investment,...

Extracted text: Page 38 Financial Accounting 1 6. Jen Corporation purchased bonds at a discount of P100000. Subsequently, Jen sold these bonds ot o premium of P140,000. During the period that Jen held ins investment, armortization of the discount amounted to P20000. Whatamount should Jen report as gain on sale of bonds? Chapter 11 Q. 120,000 b. 220,000 C. 240,000 d. 260,000


Extracted text: 7. On January 1,2020, Miroge Compony ocquired P4,000000 of 12% foce voue bonds at P3,767000to behekd to maturity with a 14% effective yleld. Interest on bonds is poyoble annualy on December 31 ond the bonds moture on Jjonvory 1, 2024. The effective interestmethod of armortization is used. Whatis the carrying VOve of the investment on December 31,2020? a. 3814.380 b. 3,767000 C. 4,000,000 d. 3,719620