Use the following information for questions $8$ and $9$

Maxwell Inc. acquired as a long$-$term investment $$60$ million of $6\%$ bonds dated July $1,$ on July

$1,2023.$ The market interest rate $($yield$)$ was $8\%$ for bonds with similar risk and maturity.

Maxwell paid $$50$ million for the bonds. The company will receive interest semiannually on

June $30$ and December $31.$ The fair value of the bonds on December $31,2023$ was $$55$ million.

Assume Maxwell has both the intent and ability to hold the bonds until maturity.

The journal entry to record interest on December $31,2023$ at the effective $($market$)$ rate

would include:

A$.$ A debit to Interest Receivable of $$1,800$

B$.$ A debit to cash of $$2,000,000$

C$.$ A debit to Interest Expense of $$1,800,000$

D$.$ A debit to Discount on Investment in Bonds of $$200,000$

On the December $31,2023$ Balance Sheet Maxwell would report a net asset for the

Investment in Bonds for the bonds in the amount of

A$.$ $$50,000,000$

B$.$ $$55,000,000$

C$.$ $$50,200,000$

D$.$ $$60,000,000$