Touma Products purchased a 5-year, $50,000 bond at face value on July 1, 2017. The bond's stated
interest rate is 5%, paid annually on June 30. Touma has the intent and the ability to hold the bond for
the full five years. As a result of changes in the overall economy, the bond had a fair value of $51,000
on July 1, 2018, and $52,000 on July 1, 2019. What is the carrying value of the debt security on July 1,
2018, and 2019, respectively?
Select one:
a. $52,500; $55,000
b. $50,000; $50,000
c. $51,000; $52,000
d. $50,000; $55,000
e. $50,000; $52,500