On July 1, 2018, Center Company paid $599,000 for 10 percent, 20-year bonds with a face value

Question:

On July 1, 2018, Center Company paid $599,000 for 10 percent, 20-year bonds with a of $500,000. Interest is paid on December 31 and June 30. The bonds were purchased to yield 8 percent. Center uses the interest method to recognize interest income from this investment. What is the carrying amount of this investment in bonds in Center's December 31, 2018 if Center intends to hold the bonds to maturity?
a. $603,950.b. $599,000.c. $597,960.d. $596,525.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...