On January 1, Reagan Company purchased $15,000 of Delta Company's 12% bonds, acquired at par, as available- for-sale securities. The bonds pay interest on June 30 and December 31 each year. What amount should be recorded to the Investment in Available-for-Sale Securities account?

Question

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Since the bonds were acquired at par value, the amount recorded in the Investment in Available-for-Sale Securities account is the purchase price, which is $15,000.

On January 1, Reagan Company Purchased $15,000 of Delta Company's