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A held-to-maturity investment with a book value of $6,000,000 is determined to be impaired in 2017 and is written down to $2,000,000. In 2018, the
A held-to-maturity investment with a book value of $6,000,000 is determined to be impaired in 2017 and is written down to $2,000,000. In 2018, the investments value increases to $6,500,000. Assume amortized cost without impairment is $6,000,000.
In 2018, following U.S. GAAP:
a.A $4,000,000 gain is reported in income.
b.A $4,500,000 gain is reported in income.
c.A $4,000,000 gain is reported in OCI.
d.No gain is reported.
A held-to-maturity investment with a book value of $6,000,000 is determined to be impaired in 2017 and is written down to $2,000,000. In 2018, the investments value increases to $6,500,000. Assume amortized cost without impairment is $6,000,000.
In 2018, following U.S. GAAP:
a.A $4,000,000 gain is reported in income.
b.A $4,500,000 gain is reported in income.
c.A $4,000,000 gain is reported in OCI.
d.No gain is reported.
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