### Cost of long-term investment in bonds

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Kern Company purchased bonds with a face amount of \$400,000 between interest payment dates. Kern 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

\$424,000.

\$414,000.

\$408,000.

\$400,000.

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