Question: i will thumbs up for fast response and correct answer On January 1, 2021, JJ Corp. purchased $120,000 of GMD Company bonds at a discount

i will thumbs up for fast response and correct answer

On January 1, 2021, JJ Corp. purchased $120,000 of GMD Company bonds at a discount of $5,000. The GMD bonds pay 6% interest but were purchased when the market interest rate was 8% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rupar accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. In Rupar's December 31, 2021, journal entry to record the second period of interest, Rupar would record a debit to Discount on Bond Investment of: Multiple Choice $4,640 $409. $3,409. $395

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