On June 1, $400,000 of bonds were purchased as a long-term investment at 101.5 and $500 was paid as the brokerage commission. If the bonds bear interest at 12%, which is paid semiannually on January 1 and July 1, what is the total cost to be debited to the investment account?
A) $400,000
B) $406,500
C) $405,500
D) $402,000
B
You might also like to view...
During the planning phase of the writing process, which of the following will help you prioritize informational needs and focus on the most important questions?
A) Statement of purpose and audience needs B) Work timeline C) Executive dashboard D) Analytics matrix E) Statement of purpose
A correlation matrix indicates the coefficient of correlation between each pair of variables
Indicate whether the statement is true or false
Which of the following is an example of an investing activity?
A) Purchasing a building B) Paying off a loan C) Employing workers D) Producing goods and services
Disadvantages of the iterative SDLC include each of the following except
A) revisiting and revising prior phases is not easy to accomplish. B) high-level design has to predict all integrations well in advance. C) needs great effort to manage all integrations. D) project teams should be able to estimate well enough to plan all integrations.