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Question 1 (2 points) On January 1, 2018, Burkett Corporation purchased, as a long-term investment,...

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Question 1 (2 points) On January 1, 2018, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595. At this time, the market rate of interest was approximately 7%. The bond pays interest on January 1 and July 1. On December 31, 2018, the fair value of the bonds was $23,950. What is the entry to record the purchase? 21,595 21,595 25,000 Long-Term Investments Cash Long-Term Investments Unrealized Gain on Long-Term Investments Cash Long-Term Investments Unrealized Loss on Long-Term Investments Cash Long-Term Investments Interest Revenue 3,405 21,595 21,595 3,405 25,000 25,000 3,405 Cash 21,595

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