Kern Company purchased bonds with a face amount of €400,000. Kern purchased the bonds at 397,000 and paid brokerage costs of €6,000. The amount to record as the cost of this debt investment is a. 397,000 b. 391,000 C. 403,000 d. 400,000

Kern Company purchased bonds with a face amount of €400,000. Kern purchased the bonds at 397,000 and paid brokerage costs of €6,000. The amount to record as the cost of this debt investment is a. 397,000 b. 391,000 C. 403,000 d. 400,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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Question

Kern Company purchased bonds with a face
amount of €400,000. Kern purchased the
bonds at 397,000 and paid brokerage costs
of €6,000. The amount to record as the cost
of this debt investment is
a. 397,000
b. 391,000
C. 403,000
d. 400,000

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