1. On January 1, 2016. Bustle Company purchased as a long-term investment $5,000,000 face value of Rezin...
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1. On January 1, 2016. Bustle Company purchased as a long-term investment $5,000,000 face value of Rezin Company 8% bonds for $4,620,921. The bonds were purchased to yield 10% interest with the business model of collecting contractual cash flows that are solely payments of principal and interest. The entity does not elect the fair value option in measuring financial assets. The bonds mature on January 1, 2021, and pay interest annually on December 31. The effective interest method of amortization is used. What is the carrying amount of the investment on December 31, 2017?
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