Question
In: Accounting
Berryhill Company purchased $100,000 bonds at 104. Accrued interest for three months was $1,000; brokerage fees...
Berryhill Company purchased $100,000 bonds at 104. Accrued interest for three months was $1,000; brokerage fees were $500. The cost of this long-term investments in bonds is:
Select one:
a. $106,000
b. $104,500
c. $105,000
d. $104,000
e. $106,500
Solutions
Expert Solution
Cost of the long term investment = Cost + Brokerage fees
= ($100,000 * $104 / $100) + $500
= $104,500
The answer is Option b.
ekkarill92 answered 2 years agoRelated Solutions
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