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Harry Potter, Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. Held-to-Maturity Fair
Harry Potter, Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. Held-to-Maturity Fair Value Securities: 12/31/2020 Peverell Brothers $ 380,000 Co. Bonds Fair Value 12/31/2021 $ 405,000 Amortized Cost 12/31/2020 $ 372,500 Amortized Cost 12/31/2021 $ 365,000 Fair Value 12/31/2020 Fair Value 12/31/2021 Cost (at Face Value) $ 68,400 $ 56,200 $ 65,300 Trading Securities: Elder Wand Co. Bonds Resurrection Stone Inc. Bonds Invisibility Cloak Inc. Bonds $ 52,800 $ 82,000 $ 44,000 $ 49,000 $ 43,500 $ 37,900 Available-for-Sale Securities: Firebolt Co. Bonds Fair Value 12/31/2020 Cost (at Face Value) Fair Value 12/31/2021 $ 152,100 $ 136,500 $ 145,000 1. What should Harry Potter, Inc. report for its total investment in bonds in the December 31, 2020 and December 31, 2021 balance sheets? 2. What would be the balance in Harry Potter's Accumulated Other Comprehensive Income (AOCI) with respect to these investments in its 12/31/2020 and 12/31/2021 balance sheets (ignore taxes)? 3. What total unrealized holdi gain loss would Harry Potter report in its 2020 and 2021 Net Income relative to its tments in bonds? 4. What total unrealized holding gain or loss would Harry Potter report in its 2020 and 2021 Other Comprehensive Income (OCI) relative to its investments in bonds? 2020 2021 Total investment in bonds reported on the Dec. 31 balance sheet Accumulated Other Comprehensive Income (AOCI) Balance on Dec. 31 Unrealized holding gain/loss included in Net Income Unrealized holding gain/loss included in Other Comprehensive Income (OCI)
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