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On January 1, 2020, the Computer Company purchased 10%, $400,000, two-year bonds due December 31, 2021. The issuance price of the bonds was $414,520. Interest
On January 1, 2020, the Computer Company purchased 10%, $400,000, two-year bonds due December 31, 2021. The issuance price of the bonds was $414,520. Interest is payable semi-annually annually beginning June 30, 2020. The bonds had an effective interest rate of 8%. The fair value of the bonds at December 31, 2020 was $408,000. The Computer Company plans to hold the securities until maturity and did not elect the fair value option. It uses the effective interest rate to recognize the interest revenue on its debt securities. For what amount would the Computer Company show this held-to-maturity security on its balance sheet at December 31, 2020? Round your answer to the nearest dollar
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