Determine cost of long-term investment in bonds

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Barr Company purchased bonds with a face amount of $400,000 between interest payment dates. Barr purchased the bonds at 102, paid brokerage costs of $6,000, and paid accrued interest for three months of $10,000. The amount to record as the cost of this long-term investment in bonds is

a. $424,000.

b. $414,000.

c. $408,000.

d. $400,000.

Reference no: EM13155170

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