On October 1, 2014, the Sun Company Acquired 9% Bonds $\quad$

On October 1, 2014, the 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 $\quad$ 412,000
Interest Income $\quad$$\quad$$\quad$ 9,360
Cash $\quad$$\quad$$\quad$ 421,360

B) Investment in Held-to-Maturity Debt Securities $\quad$ 412,000
Interest Income $\quad$$\quad$$\quad$ 9,000
Cash $\quad$$\quad$$\quad$ 421,000

C) Investment in Held-to-Maturity Debt Securities $\quad$ 421,000
Cash $\quad$$\quad$$\quad$ 421,000

D) Investment in Held-to-Maturity Debt Securities $\quad$ 412,000
Cash $\quad$$\quad$$\quad$ 412,000