General Investment Co GIC Purchased the Bonds:
A)At Par

Short Answer

General Investment Co.(GIC)purchased bonds on January 1,2012.GIC's accountant has projected the following amortization schedule from purchase until maturity:
$$\begin{array} { r r r c c } { \begin{array} { c } \text { Date } \\\end{array} } & \begin{array} { c } \text { Cash } \\\text { Paid }\end{array} & \begin{array} { c } \text { Interest } \\\text { Expense }\end{array} & \begin{array} { c } \text { Increase in } \\\text { Carrying Value }\end{array} & \begin{array} { c } \text { Carrying } \\\text { Value }\end{array} \\1 / 1 / 12 & && & \$ 194,758 \\6 / 30 / 12 & \$ 7,000 & \$ 7,790 & \$ 790 & 195,548 \\12 / 31 / 12 & 7,000 & 7,822 & 822 & 196,370 \\6 / 30 / 13 & 7,000 & 7,855 & 855 & 197,225 \\12 / 31 / 13 & 7,000 & 7,889 & 889 & 198,114 \\6 / 30 / 14 & 7,000 & 7,925 & 925 & 199,039 \\12 / 31 / 14 & 7,000 & 7,961 & 961 & \$ 200,000\end{array}$$
GIC purchased the bonds:
A)At par.
B)At a discount.
C)At a premium.
D)Cannot be determined from the given information.