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 1/1/10.Were these bonds purchased at a premium or discount, and was the value of the Accumulated OCI account a debit or credit on 12/31/12?

Select one:

a. Premium, debit

b. Premium, credit

c. Discount, debit

d. Discount, credit

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 1/1/10. Were these bonds purchased at a premium or discount, and was the value of the FVA account a debit or credit on 12/31/12?

Select one:

a. Premium, debit

b. Premium, credit

c. Discount, debit

d. Discount, credit

12/31/10 $491,150 $485,300 12/31/11 $519,442 $509,000 12/31/12 $550,000 $539,000 Amortized cost Fair Value