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Amount to record as cost of debt

On July 1, 2013, Wilshire Corporation acquired 500, $1,000, 8% bonds at 96 plus accrued interest. The bonds were dated April 1, 2013, and mature on March 31, 2018, with interest paid each September 30 and March 31. The bonds will be added to Wilshire's available-for-sale portfolio. The amount to record as the cost of this debt investment on July 1, 2013 is:

a) $490,000

b) $485,000

c) $480,000

d) $540,000

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Amount to record as cost of debt

Reference No:- TGS045878

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Prepared by a verified Expert

Accounting Basics: Amount to record as cost of debt

Reference No:- TGS045878

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