Question
In 2019, Osgood Corporation purchased $7.5 million worth of 10-year municipal bonds at face value. On December 31, 2021, the bonds had a fair value
In 2019, Osgood Corporation purchased $7.5 million worth of 10-year municipal bonds at face value. On December 31, 2021, the bonds had a fair value of $4,600,000 and Osgood reclassified the bonds from held-to-maturity to trading securities. Osgood's December 31, 2021, balance sheet and the 2021 income statement would show the following:
| Investment in bonds (TS) | Income statement loss on investments | ||||||
| a. | $ | 4,600,000 | $ | 0 | |||
| b. | $ | 4,600,000 | $ | 2,900,000 | |||
| c. | $ | 7,500,000 | $ | 2,900,000 | |||
| d. | $ | 7,500,000 | $ | 0 | |||
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Accounting Fraud, Maneuvering And Manipulation, Past And Present
Authors: Gary Giroux
2nd Edition
1947098748, 9781947098749
