On October 1, Dennis Company purchased $200,000 face value 12 percent bonds for 98 plus accrued interest and brokerage fees and classified them as held-to-maturity securities. Interest is paid semiannually on January 1 and July 1. Brokerage fees for this transaction were $700.
At what amount should this acquisition of bonds be recorded?
A. $196,000
B. $202,000
C. $196,700
D. $202,700