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In 2015, Osgood Corporation purchased $6.7 million in 10-year municipal bonds at face value. On December 31, 2016, the bonds had a market value of
In 2015, Osgood Corporation purchased $6.7 million in 10-year municipal bonds at face value. On December 31, 2016, the bonds had a market value of $4,000,000 and Osgood reclassified the bonds from held to maturity to trading securities. Osgood's December 31, 2016, balance sheet and the 2016 income statement would show the following: Balance sheet Investment in municipal bonds $6.700.000 $4.000.000 $4.000.000 $6.700.000 Income statement Loss on investments $2.700.000 $2.700.000 $0 $0
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