Question: Question Content Area On October 1 , Year 7 , Sun Company acquired 9 % bonds of Jack's Company with a face value of $

Question Content Area
On October 1, Year 7, Sun Company acquired 9% bonds of Jack's Company with a face value of $400,000 for $412,000 plus accrued interest. Interest is payable on June 30 and December 31. How would Sun record the initial bond investment to be held-to-maturity?
a. Investment in Held-to-Maturity Debt Securities 412,000
Interest Income 9,360
Cash 421,360
b. Investment in Held-to-Maturity Debt Securities 412,000
Cash 421,000
c. Investment in Held-to-Maturity Debt Securities 421,000
Cash 421,000
d. Investment in Held-to-Maturity Debt Securities 412,000
Interest Income 9,000
Cash 421,000

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