On October 1, 2010, K Co. purchased $500,000 of Q Co.'s 10%, 5-year bonds for $514,000. On the date of purchase, K Co. should debit which of the following account(s) ?
A) Investment in Q Co. Bonds for $514,000
B) Investment in Q Co. Bonds for $500,000 and Premium on Q Co. Bonds for $14,000
C) Investment in Q Co. Bonds for $500,000 and Interest Expense for $14,000
D) Investment in Q Co. Bonds for $514,000 and credit Discount on Q Co. Bonds for $14,000
E) Equity Investment in Q Co. for $514,000
Correct Answer:
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