Question
During 2018, Arnold Corporation purchased $6.2 million of 10 year municipal bonds at face value. On December 31, 2020, the bonds had a market value
During 2018, Arnold Corporation purchased $6.2 million of 10 year municipal bonds at face value. On December 31, 2020, the bonds had a market value of $6,900,000. Arnold reclassified the bonds from held-to-maturity to trading securities. Arnold's balance sheet and income statement for December 31, 2020 will reflect which of the following?
Group of answer choices.
| Investment in municipal bonds | Income statement Unrealized gain on investments |
| $6,900,000 | $700,000 |
.
| Investment in municipal bonds | Income statement Unrealized gain on investments |
| $6,200,000 | $700,000 |
.
| Investment in municipal bonds | Income statement gain on investments |
| $6,900,000 | $0 |
.
| Investment in municipal bonds | Income statement gain on investments |
| $6,200,000 | $0 |
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
125972266X, 9781259722660
