Landmark Corp. buys $300,000 of Schroeter Company's 8%, 5-year bonds payable, at par value on September 1. Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. The journal entry to record the purchase should include:
A. A debit to Debt Investments-Trading $300,000.
B. A debit to Debt Investments-AFS $300,000.
C. A debit to Cash $300,000.
D. A debit to Debt Investments-HTM $300,000.
E. A debit to Stock Investments-HTM $300,000.
Answer: D
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