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.

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Definitions:

Cherokee Nation

A large Native American tribe historically based in the southeastern United States, known for their adaptation to European American culture and the tragic Trail of Tears relocation.

Seminoles

A Native American people originally of Florida, known for their resistance against the United States in the early 19th century, resulting in the Seminole Wars.

Second Seminole War

A conflict from 1835 to 1842 in Florida between the United States and the Seminole Native Americans, marking the longest and most costly of the Indian Wars in U.S. history.

Plains Indians

Native American tribes who inhabited the Great Plains of North America, known for their nomadic lifestyle and reliance on buffalo hunting.