On January 1, 2019, a Company purchased 12% bonds having a maturity

value of $500,000 for $537,907.40 (amortised cost at the end of 2019 would be 531,698.14). The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature January 1, 2024, with interest receivable December 31 of each year. The companys business model is to hold these bonds to collect contractual cash flows.

Select one:

a. None the other answers is correct

b. At December 2019 the company records the entry to recognize interest which will include a debit to the investment for 6,209.26

c. At December 2019, the company records the entry to recognize interest which will include interest revenue for 60,000

d. The entry at December 2020 will include a debit to Cash for 60,000

e. I want to leave this answer blank