Landmark Corp.buys $300,000 of Schroeter Company's 8%,5-year bonds at par value on September 1.Interest payments are made semiannually.All of the following regarding accounting for the securities are true except:
A) The debt securities should be recorded at cost,$300,000.
B) The securities will have a maturity value of $300,000.
C) The semiannual interest payment amount is $12,000.
D) The semiannual interest payment amount is $24,000.
E) Interest Revenue should be credited when an interest payment is received.
Correct Answer:
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