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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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