on November 1st, 2014, Horton company purchased Lopez Incorporated 10 year 9% bonds with a...
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on November 1st, 2014, Horton company purchased Lopez Incorporated 10 year 9% bonds with a face value of $600,000, for $540,000. an additional $15,000 was paid for the accrued interest. Interest is payable semi-annually on January 1st and July 1st. The Bonds mature on July 1st, 2021. Horton uses the straight-line method of amortization. Ignoring income taxes, the amount reported in Horton's 2014 income statement as a result of Horton's available for sale investment in Lopez was multiple choice a. $13,500 be $8,000 C. $10,000 D. $9,000
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