problem 9 the following transaction transpired for bokod company during the year on january 1 20

1. The purchase price of bonds acquired from Buguias can be calculated using the present value f

Question

The following transactions transpired for Bokod Company during the year. - On January 1, 2021, Bokod acquired from Buguias a 4-year bond with a face value of P1,200,000 and stated interest of 10% per year payable annually on December 31. The bonds were acquired to yield 12%. - On January 1, 2021, Bokod acquired from Baguio at 10% interest, 4-year bonds with a face value of P1,200,000 for P1,100,000. Transaction cost paid by the company amounted to P44,752. Interest is payable annually on December 31. - On January 1, 2021, Bokod Co. acquired from Kabayan a 4-year bond with a face value of P1,800,000 and stated interest of 10% per year. The bonds mature in 4 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 12%. - On April 1, 2021, Bokod acquired from Kayapa a 4-year bond with a face value of P2,000,000 and stated interest of 10% per year payable annually on December 31. The bonds were acquired to yield 12%. All the investments are to be appropriately classified as FAAC. Question: Based on the above data, answer the following: (Round off present value factors to four decimal places) 1. How much is the purchase price of bonds acquired from Buguias? a. Nil b. P227,076 c. P1,127,076 d. P1,051,730 2. How much is the purchase price of bonds acquired from Baguio? a. P1,884,814 b. P1,878,460 c. P1,834,814 d. P1,934,814 3. How much is the purchase price of bonds acquired from Kabayan? a. Nil b. P612,167 c. P1,727,834 d. P1,030,521

The following transactions transpired for Bokod Company during the year.
- On January 1, 2021, Bokod acquired from Buguias a 4-year bond with a face value of P1,200,000 and stated interest of 10% per year payable annually on December 31. The bonds were acquired to yield 12%.
- On January 1, 2021, Bokod acquired from Baguio at 10% interest, 4-year bonds with a face value of P1,200,000 for P1,100,000. Transaction cost paid by the company amounted to P44,752. Interest is payable annually on December 31.
- On January 1, 2021, Bokod Co. acquired from Kabayan a 4-year bond with a face value of P1,800,000 and stated interest of 10% per year. The bonds mature in 4 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 12%.
- On April 1, 2021, Bokod acquired from Kayapa a 4-year bond with a face value of P2,000,000 and stated interest of 10% per year payable annually on December 31. The bonds were acquired to yield 12%.

All the investments are to be appropriately classified as FAAC.

Question:
Based on the above data, answer the following: (Round off present value factors to four decimal places)

1. How much is the purchase price of bonds acquired from Buguias?
a. Nil
b. P227,076
c. P1,127,076
d. P1,051,730

2. How much is the purchase price of bonds acquired from Baguio?
a. P1,884,814
b. P1,878,460
c. P1,834,814
d. P1,934,814

3. How much is the purchase price of bonds acquired from Kabayan?
a. Nil
b. P612,167
c. P1,727,834
d. P1,030,521

Added by Justin V.