Use the Following Information for Questions

question 75

Multiple Choice

Use the following information for questions
On January 1, 2010, Bregeut Company, a calendar year corporation, purchased 600 of the $1,000 face value, 9% bonds of Clariant Incorporated, for CHF622,000, including brokerage fees.The bonds, which mature on January 1, 2015, pay interest semiannually on July 1 and January 1.
-On July, 2010, Bregeut will make an entry to

• A)amortize premium on bonds payable.
• B)accrue interest expense.
• C)recognize interest revenue.
• D)adjust the investment to fair value.

---

Definitions:

Financial Advantage

A benefit gained in financial terms, often seen as the edge that one company or entity has over its competitors in terms of cost, efficiency, or profitability.

Special Discounted Price

A reduced pricing offer made available to customers, often as a promotional or loyalty incentive.

Milling Machines

A type of machine tool used in the machining process, capable of performing cutting operations by moving a rotating cutter into the workpiece.

Profitable Use

The deployment of resources in a way that maximizes financial gain or return on investment.