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On October 1, 2018, Renfro Company purchased to hold maturity, 4,000, $1,000, 9% Bonds for $3,900,000. The bonds, which mature on February 1, 2027, pay
On October 1, 2018, Renfro Company purchased to hold maturity, 4,000, $1,000, 9% Bonds for $3,900,000. The bonds, which mature on February 1, 2027, pay interest semiannually on February 1 and August 1. Renfro uses the straight-line method of amortization. The fair value of the bonds at December 31, 2018 was $3,960,000. Renfro chooses the fair value option. The bonds should be reported in the December 31, 2018 balance sheet at
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