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On October 1, 2017, Moray Ltd

Question 62

Multiple Choice

On October 1, 2017, Moray Ltd.purchased 500 of the $1,000 face value, 8% bonds of Eel Ltd.for $585,000, including accrued interest of $10,000.The bonds, which mature on January 1, 2021, pay interest semi-annually on January 1 and July 1.Moray used the straight-line method of amortization and appropriately recorded the bonds as long-term.On Moray's December 31, 2018 balance sheet, the carrying value of the bonds would be


A) $575,000.
B) $570,000.
C) $568,000.
D) $560,000.

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