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What amount should purl report on its december 31

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Question

On January 1, 2016, Purl Corp. purchased, as a long-term investment, $500,000 face value Shaw, Inc. 8% bonds for $456,200. The bonds were purchased to yield 10% interest. Purl has the positive intent and ability to hold the bonds until maturity on January 1, 2022. The bonds pay interest annually on January 1, and Purl uses the interest method of amortization.

What amount (rounded to nearest $100) should Purl report on its December 31, 2017 Balance Sheet for this long-term investment?

Reference no: EM132331660

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