31. A company has a bond investment classified as "Held-to-maturity." The amortized cost of the investment as of December 31, 2022 was $96,700. The market value of the bonds on that same date was $102,400. The company will recognize in its financial statements for the year 2022:

a. An unrealized gain of $5,700 on the Statement of Income and Expenses

b. An unrealized gain of $5,700 on the Statement of comprehensive income

c. A credit balance of Fair value adjustment in the Statement of position

d. None of the above

32. Refer to the previous question. Assume that on February 28, 2023, the market value of the bonds was $103,500. The company sold the notes for that amount on March 1, 2023. Prior to the sale, the amortized cost was adjusted to $96,900. On the aforementioned date, the company will recognize as a result of the sale:

a. A realized gain of $6,600 on the Statement of Income and Expenses.

b. A realized gain of $1,100 on the Statement of Income and Expenses.

c. An unrealized gain of $1,100 and a realized gain of $5,500 on the Statement of Income and Expense.

d. A realized gain on sale of $1,100 and a reclassification from AOCI to the Statement of Income and Expense of $5,500.

33. A company has a portfolio of investments classified as for trading (Trading). On December 31, 2022, the amortized cost of the portfolio was $190,550. On that same date the market value of the portfolio was $186,490. The company will recognize in its financial statements for the year 2022:

a. An unrealized loss of $4,060 on the Statement of Income and Expenses

b. An unrealized loss of $4,060 on the Statement of comprehensive income

c. A credit balance of Fair value adjustment in the Statement of position

d. Alternatives a and c are correct.

34. Refer to the previous question. Assume that on December 31, 2022, the company sold the investment portfolio in its entirety for the amount of its market value. The company will recognize on December 31:

a. An unrealized loss on the statement of income and expense

b. A realized loss on the statement of income and expense

c. A realized loss and a reclassification of AOCI in the Statement of Income and Expense

d. None of the above.

35. A company has a bond investment classified as "Available for sale." As of December 31, 2022, the amortized cost was $147,500 and the market value was $150,000. The company will recognize in its financial statements for the year 2022:

to. An unrealized gain of $2,500 on the Income Statement of Income and Expenses

b. An unrealized gain of $2,500 on the Statement of comprehensive income

c. A credit balance of Fair value adjustment in the Balance Sheet.

d. Both "b" and "c" are correct.