Debt investments are recorded at theA) face value of the bonds purchased.B) face value of the bonds purchased plus interest.C) price paid for the bonds plus interest.D) price paid for the bonds plus brokerage fees.

Question

Debt investments are recorded at theA)  face value of the bonds purchased.B)  face value of the bonds purchased plus interest.C)  price paid for the bonds plus interest.D)  price paid for the bonds plus brokerage fees.

Aniela Nguyen · Accepted Answer

Final Answer : D, Explanation :  Debt investments are recorded at the price paid for the bonds, which includes any brokerage fees incurred during the purchase. This method ensures that the investment is recorded at its actual acquisition cost.

Debt investments are recorded at the

A) face value of the bonds purchased.
B) face value of the bonds purchased plus interest.
C) price paid for the bonds plus interest.
D) price paid for the bonds plus brokerage fees.

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