q6

On October 1,2012, Renfro Co. purchased to hold to maturity, 2,000,$1,000,9% bonds for $1,980,000 which includes $30,000 accrued interest. The bonds, which mature on February 1, 2021, pay interest semiannually on February 1 and August 1. Renfro uses the straight-line method of amortization. The bonds should be reported in the December 31 . 2012 balance sheet at a carrying value of $1,950,000 $1,951,500 51,960,000. $1,080,500