In 2018, Osgood Corporation purchased $4 million of 10-year municipal bonds at face value. On December 31, 2020, the bonds had a fair value of $3,700,000 and Osgood reclassified the bonds from held to maturity to trading securities. Osgood's December 31, 2020, balance sheet and the 2020 income statement would show the following:

Income

Investment in statement loss

municipal bonds on investments