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Facts On December 1, YR01 Target Inc. purchased, as an investment, bonds issued by General Steel Co. These bonds have a face amount of $1,000,000
Facts On December 1, YR01 Target Inc. purchased, as an investment, bonds issued by General Steel Co. These bonds have a face amount of $1,000,000 and were purchased at 106. The management of Target Inc. has the positive intent and financial ability to hold these bonds until they mature on July 1, YR05. The bond indenture agreement includes a provision which permits General Steel Co. to call the bonds any time after August 1, YR02. If the bonds are called General Steel Co. is required to pay the full face amount of the bonds plus any accrued interest. Question Given Target's positive intent and financial ability to hold these bonds until they mature, how should this bond investment be classified on the Target Inc. balance sheet at December 31, YR01? 2. Identify the specific paragraph of the FASB Codification which addresses this issue and submit a printout of this paragraph with your solution
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