Question
Flynn Co. holds the following portfolio of bond investments: Bond Redemption Date Face Value Unamortized Premium (Discount) Carrying Value Fair Value A 1/1/2030 $50,000,000 $2,000,000
Flynn Co. holds the following portfolio of bond investments:
| Bond | Redemption Date | Face Value | Unamortized Premium (Discount) | Carrying Value | Fair Value |
| A | 1/1/2030 | $50,000,000 | $2,000,000 | $52,000,000 | $25,000,000 |
| B | 6/1/2045 | $20,000,000 | ($1,000,000) | $19,000,000 | $19,500,000 |
| C | 1/1/2033 | $10,000,000 | $750,000 | $10,750,000 | $9,000,000 |
| D | 1/1/2050 | $15,000,000 | ($3,000,000) | $12,000,000 | $15,100,000 |
As of 12/31/2019, the entire portfolio was classified as Held-to-Maturity (HTM). During 2020, Flynn Co. sold Bond A because the bond issuer exhibited signs of significant financial distress.
Which section of the FASB Accounting Standards Codification best defines how Flynn should handle the classification of the remaining HTM securities?
***Please format your response as follows: XXX-XX-XX-XX
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
