On November 1, 2012, Horton Co. purchased Lopez, Inc., 10-year, 9%, bonds with a facevalue...
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On November 1, 2012, Horton Co. purchased Lopez, Inc., 10-year, 9%, bonds with a facevalue of $500,000, for $450,000. An additional $15,000 was paid for the accrued interest.Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1,2019. Horton uses the straight-line method of amortization. Ignoring income taxes, theamount reported in Horton's 2012 income statement as a result of Horton's available-for-sale investment in Lopez was
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