On January 1 of the current year, Ola Company paid $405,000 for a $400,000 face...
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Accounting
On January 1 of the current year, Ola Company paid $405,000 for a $400,000 face value 3% corporate bond yielding 2.8%, interest paid annually on December 31, and classified it as held-to-maturity. No impairment losses are reported. Olas reporting year ends December 31. On its balance sheet as of the end of the current year, Ola reports the investment at:
Select one:
a. $405,000
b. $404,340
c. $405,660
d. $400,000
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