For several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-for-sale. The bonds were acquired at a cost of $600,000. At the end of 2018, their fair value was $730,000 and their amortized cost was $610,000. At the end of 2019, their fair value was $725,000 and their amortized cost was $620,000. At what amount will the investment be reported in the December 31, 2019, balance sheet? What adjusting entry is required to accomplish this objective (ignore interest)?

Lance Brothers Enterprises acquired $530,000 of 4% bonds, dated July 1, on July 1, 2018, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Lance Brothers paid $450,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers investment in the bonds on July 1, 2018, and (b) to record interest on December 31, 2018, at the effective (market) rate. (

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds for $980,000 and sold the the bonds on January 3, 2019, for $984,000. At December 31, the bonds had a fair value of $974,500. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment (ignoring interest)?