On October 1, 2011, Moreau Co.purchased 500 of the $1,000 face value, eight percent bonds of Lear, Ltd., for $585,000, including accrued interest of $10,000.The bonds, which mature on January 1, 2018, pay interest semiannually on January 1 and July 1.Moreau used the straight-line method of amortization and appropriately recorded the bonds as long- term.On Moreau's December 31, 2012 balance sheet, the carrying value of the bonds is

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The Answer of On October 1, 2011, Moreau Co.purchased 500 of the $1,000 face value, eight percent bonds of Lear, Ltd., for $585,000, including accrued interest of $10,000.The bonds, which mature on January 1, 2018, pay interest semiannually on January 1 and July 1.Moreau used the straight-line method of amortization and appropriately recorded the bonds as long- term.On Moreau's December 31, 2012 balance sheet, the carrying value of the bonds is