Presented below is a bond-investment amortization schedule for New York Company with related fair values provided.These bonds are classified as available-for-sale; they were purchased on 1/1/20.

12/31/20

12/31/21

12/31/22

Amortized cost

$491,150

$519,442

$550,000

Fair Value

$485,300

$509,000

$552,000

Were these bonds purchased at a premium or discount, and was the value of the Accumulated OCI account a debit or credit on 12/31/22?

Select one:

a.Premium, debit

b.Premium, credit

c.Discount, debit

d.Discount, credit