Use the Following Information for Questions

question 67

Multiple Choice

Use the following information for questions.
Carsen Company purchased $200,000 of 10% bonds of Garrison Co.on January 1, 2012, paying $211,950.The bonds mature January 1, 2022; interest is payable each July 1 and January 1.The discount of $11,950 provides an effective yield of 9%.Carsen's objective is to hold the bonds to collect the contractual cash flows.Carsen Company uses the effective interest method.
-On July 1, 2012, Carsen Company should decrease its Held-for-collection Debt Investments account for the Garrison Co.bonds by:

• A)$462.
• B)$808.
• C)$924.
• D)$1,598.

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Definitions:

Seize The Day

A phrase encouraging individuals to make the most of the present moment without concern for the future, often associated with the Latin term "carpe diem."

Defense Mechanism

Unconscious psychological strategies employed to protect a person from anxiety-arising thoughts or feelings.

Subception

A psychological process by which an individual responds to stimuli without consciously perceiving them.

Self-Actualization

A state of personal growth in which people fulfill their true potential.