Question

On March 31, acquired 5% distribution transformers corporation bonds costing $410,000 at face value. What is the total face value of the acquired bonds?

a) $390,500
b) $410,000
c) $429,500
d) $430,500

Answer 1

The total face value of the acquired distribution transformers corporation bonds costing $410,000 at face value is $410,000.

Step-by-step explanation:

If a student acquires 5% distribution transformers corporation bonds costing $410,000 at face value, the total face value of the acquired bonds is simply the cost of the acquisition, as the cost given is already at face value. Therefore, the total face value of the bonds is $410,000, which corresponds to option (b).