Debra Technologies invested $50,000 to buy $50,000 face value, 8%, five-year in municipal bonds on January 2, 2010. The bonds will mature on January 2, 2015. The bonds pay interest semiannually on January 2 and July 2 every year till maturity. When the company receives interest payments, how will the balance sheet line items be affected?
A) Assets will decrease.
B) Total asset will remain unchanged.
C) Liabilities will decrease.
D) Equity will increase.
Correct Answer:
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