Question: what is the answer Question 18 (1 point) Brown Inc. (BI) reports an investment in bonds using the amortized cost method. Th bonds have a

what is the answer

Question 18 (1 point) Brown Inc. (BI) reports an investment in bonds using the amortized cost method. Th bonds have a face value of $1,000,000 and were purchased on January 1, Year 1. Th market interest rate is 8%, and the bonds pay interest at a rate of 6%. Interest payments are made every June 30 and December 31. The bonds mature 10 years from the date of purchase, on December 31. Which one of the following journal entries records the acquisition of the bonds on January 1, Year 1? O a) Dr. Investment in bonds $664,496 Cr. Cash $664,496 O b) Dr. Investment in bonds $864,097 Cr. Cash $864,097 c) Dr. Investment in bonds $880,405 Cr. Cash $880,405 d) Dr. Investment in bonds $1,000,000 Cr. Cash $1,000,000 11

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