On October 1,Ryan Company Purchased $200,000 Face Value 12% Bonds

question 55

Multiple Choice

On October 1,Ryan Company purchased $200,000 face value 12% bonds for 98 plus accrued interest and brokerage fees and classified them as held-to-maturity securities.Interest is paid semiannually on January 1 and July 1.Brokerage fees for this transaction were $700.At what amount should this acquisition of bonds be recorded?

• A) $196,000
• B) $196,700
• C) $202,000
• D) $202,700

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Definitions:

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Refraction

The bending of light as it passes from one medium to another with a different density, affecting its speed and direction.

Rhodopsin

A light-sensitive receptor protein involved in visual phototransduction in the retina of the eye.

Visual Pigment

Photoreceptive molecules in the retina that absorb light and trigger nerve impulses that result in vision.