Accounting Question?

Question

At acquisition, debt securities are:

A. Recorded at their cost, plus total interest that will be paid over the life of the security.
B. Recorded at the amount of interest that will be paid over the life of the security.
C. Recorded at cost.
D. Not recorded, because no interest is due yet.
E. Recorded at the amount of dividend income to be received.

Answer 1

C. - Debt and equity securities are accounted for at cost (including brokerage fees, taxes, and other charges incurred at acquisition).