Apple, Inc., purchased as a long-term investment $100 million of 8% bonds, dated January 1, on January 1, 2020. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $90 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2020, was $92 million. Please round your answers two decimal places.

d. At what amount will Apple report its investment in the December 31, 2020, balance sheet? Please show your calculation

f. If management intends to include the investment in a short-term, active trading portfolio, how will your answer to requirement e be different? Please show your journal entry.

g. If the company sold the AFS securities on January 2, 2021 at price of $93, please prepare the three journal entries pertaining the sales transaction.

Journal entry in Step 1: adjust the value to fair value on January 2, 2021

Journal entry in Step 2: reverse previous fair value adjustment

Journal entry in Step 3: record the sales transaction