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The document contains a series of financial and accounting problems related to bond investments, equity securities, and dividends. Here's a breakdown and solution to one of the key questions presented:

### Question:
On June 1, 2017, MamaMoRC Company purchased bonds with a face amount of ₱3,000,000 to be held to maturity. The stated rate on the bonds is 10%, but the bonds were acquired to yield 11%. The bonds mature at the rate of ₱1,000,000 annually every May 31, starting May 31, 2018, and interest is payable annually on May 31. The entity used the effective interest method of amortizing discount.

**Question:**
- What is the total amortization for 2018?

### Solution:
1. **Initial Information:**
   - Face amount: ₱3,000,000
   - Stated rate: 10%
   - Yield: 11%
   - Maturity schedule: ₱1,000,000 annually, starting May 31, 2018.
   - Method: Effective interest method for amortization.

2. **Step 1: Compute the purchase price using the present value of future cash flows:**
   - Interest payment: ₱3,000,000 × 10% = ₱300,000 per year.
   - The discount rate used is 11%.

   Using present value formulas for both the interest payments (annuity) and the principal repayments (lump sum), we calculate the purchase price. 

3. **Step 2: Apply the effective interest method for 2018:**
   - Interest for the year based on the effective interest rate: Initial carrying amount × yield (11%).
   - Subtract the actual cash payment based on the coupon rate (₱300,000).
   - The difference is the amortization of the bond discount.

Let me know if you'd like me to work out the detailed calculations for these steps or move on to another question!

### Would you like details on this solution or have any other questions? Here are 5 additional questions for further exploration:

1. How do we calculate the carrying amount of the bond investment on December 31, 2019?
2. What is the balance of unrealized gain-OCI on December 31, 2017, for Ryujin Domingo Company?
3. How much is the unrealized loss on financial asset-OCI at the year-end 2020 for Dos Company?
4. What amount of gain should be reported in the 2017 income statement for Ryujin Domingo Company?
5. How do we account for the dividends received from Patawad Company and others?

**Tip:** In bond accounting, using the effective interest rate method ensures that the discount or premium is amortized over the bond's life, matching the interest expense to the bond’s carrying amount.

On June 1, 2017, MamaMoRC Company purchased bonds with a face amount of ₱3,000,000 to be held to maturity. The stated rate on the bonds is 10%, but the bonds were acquired to yield 11%. The bonds mature at the rate of ₱1,000,000 annually every May 31, starting May 31, 2018, and interest is payable annually on May 31. The entity used the effective interest method of amortizing discount. What is the total amortization for 2018?

Learn how to calculate the total amortization for bond investments using the effective interest method. This problem covers key accounting concepts such as the calculation of interest, amortization, and the use of bond yield. Suitable for university-level finance and accounting students.

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