What is the total amount that carpel should report

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Question - On January 1, 2016, the Carpel Company purchased Debos Corporation's 9% bonds with a face value of $200,000 for $187,500. The bonds were purchased to yield 10%. The bonds were dated January 1, 2016; mature on December 31, 2027; and pay interest annually on December 31. Carpel uses the effective interest method of amortizing bond discounts and premiums.

What is the total amount that Carpel should report on its income statement from this investment for the year ended December 31, 2016? Assume the bonds are classified as follows:

a. Held to maturity

b. Trading Securities

c. Available for Sale

Reference no: EM131611743

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