Question
At the beginning of the year, a company following U.S. GAAP purchased marketable debt securities for $12.4 million. At the end of the year, the
At the beginning of the year, a company following U.S. GAAP purchased marketable debt securities for $12.4 million. At the end of the year, the market value declined to $11.9 million. Which of the following statements is most accurate?
A) If the securities are classified as held-to-maturity, other comprehensive income would decrease by $0.5 million.
B) If the securities are classified as trading securities, other comprehensive income would decrease by $0.5 million.
C) If the securities are classified as available-for-sale, other comprehensive income would decrease by $0.5 million.
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