What amount should white report for the investment

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Problem 1: On October 1, 2019, WHITE Corporation purchased a debt security having a face value of ?3,000,000 with an interest rate of 10% for ?3,200,000 inclusive of the accrued interest to be held as financial assets at amortized cost. A total of ?50,000 was incurred and paid by WHITE in relation to the acquisition of the debt instrument. The bonds mature on January 1, 2024, and pay interest semi-annually on January 1 and July 1. On December 31, 2019, the bonds had a market value of ?3,400,000. What amount should WHITE report for the investment in debt securities upon acquisition?

a. ? 3,125,000

b. ? 3,250,000

c. ? 3,200,000

d. ? 3,175,000

Reference no: EM132945561

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