On January 1, Bucket Company Purchased as an Investment a $1,000

Multiple Choice

On January 1, Bucket Company purchased as an investment a $1,000, 7% bond for $760. Bucket plans to hold the bond for two years. The bond pays interest on January 1 and July 1. The entry to record the amortization of the bond on December 31 would include a:

A) debit to Interest Receivable for $35.
B) debit to Long-Term Investment in Bonds for $35.
C) debit to Interest Receivable for $10.
D) debit to Long-Term Investment in Bonds for $10.