Question
6. The Parque del Monte Corporation purchased from the Parque del Ro Corporation a bond with a Face Value of $10,000, paying $10,000. Your intention
6. The Parque del Monte Corporation purchased from the Parque del Ro Corporation a bond with a Face Value of $10,000, paying $10,000. Your intention is to hold the investment until maturity. To record the purchase, the Parque del Monte corporation will make the following entry: a. Debt Investments-Held to Maturity 10,000 Cash 10,000 b. Debt Investment-Held to Maturity 12,000 Cash 10,000 Gain on Purchase of Investment 2,000 c. Debt Investments-Held to Maturity 12,000 Cash 12,000 d. Debt Investment-Held to Maturity 10,000 Gain on Purchase of Debt Investment 1,000 Cash 9,000
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