On January 1, 2019, Marites Company issue its P10,000,000 face amount, 10% bonds to yield...
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Accounting
On January 1, 2019, Marites Company issue its P10,000,000 face amount, 10% bonds to yield 8% per year. The bonds mature on January 1, 2024 and pay interest semiannually on June 30 and December 31. The relevant present value factors are as follows:
Present value of 1 at 4% for 10 periods
0.6756
Present value for an ordinary annuity at 4% for 10 periods
8.11
Present value of 1 at 5% for 10 periods
0.6139
Present value of for an ordinary annuity at 5% for 10 periods
7.72
The carrying amount of this bond liability (round to the nearest thousand) on January 1, 2019 is
Group of answer choices
10,721,000
11,148,000
10,811,000
9,753,000
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