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On January 1, 2020, Marcus Company made P3,697,120 investments in the Camper Corporation's 8%, 5-year...

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Accounting

On January 1, 2020, Marcus Company made P3,697,120 investments in the Camper Corporation's 8%, 5-year bonds with face value of P4,000,000. The effective rate for similar financial asset is 10%. Marcus company has a business model of collecting all the contractual cash flows involving the interests and principal on all debt securities. What amount should the debt security be valued on December 31, 2021 statement of financial position?

a.P3,697,120

b.P3,746,832

c.P4,000,000

d.P3,801,515

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