A company purchased bonds on July 1, 2021, for $193,404. This price represents a market rate of 9% on bonds that have a face amount of $200,000, have a stated rate of 8%, pay semiannual interest, and mature in 4 years. As of December 31, 2021, the fair value of the bonds has increased to $195,000. Assuming the investment is classified as trading securities, what amount would the company report for its investment in bonds on December 31, 2021?
A. $194,107.
B. $195,703.
C. $193,404.
D. $195,000.
Answer: D
You might also like to view...
Does the amortization of a bond premium increase, decrease, or not affect interest expense for an accounting period? Explain.
What will be an ideal response?
The text discusses the concept of “multiple selves”. According to the text,
a. we have multiple selves that can be quite distinct b. we are often not aware of how different the two sets of identities can be c. both “a” and “b” d. the concept of multiple selves is not supported by empirical research
Which of the following statements about exchanges is not true?
A) Exchanges are independently owned third-party Net marketplaces. B) Some exchanges provide vertical markets. C) Exchanges are the most successful form of B2B commerce. D) Some exchanges enable a spot market. E) Go2Paper is an example of an exchange.
Renee opened her business with the intention of importing goods from Brazil and selling them in the United States. We could say that this business is
A. an exporter. B. born-global. C. ready to launch offshoring. D. a trade mission.