Question
In 2022, Osgood Corporation purchased $8.1 million worth of 10-year municipal bonds at face value. On December 31, 2024, the bonds had a fair
In 2022, Osgood Corporation purchased $8.1 million worth of 10-year municipal bonds at face value. On December 31, 2024, the bonds had a fair value of $4,500,000 and Osgood reclassified the bonds from held-to-maturity to trading securities. Osgood's December 31, 2024, balance sheet and the 2024 income statement would show the following: Investment in bonds Income statement loss (TS) on investments a. $ 4,500,000 $ 0 b. $ 4,500,000 $ 3,600,000 C. $ 8,100,000 $ 3,600,000 d. $ 8,100,000 $ 0 In 2022, Osgood Corporation purchased $8.1 million worth of 10-year municipal bonds at face value. On December 31, 2024, the bonds had a fair value of $4,500,000 and Osgood reclassified the bonds from held-to-maturity to trading securities. Osgood's December 31, 2024, balance sheet and the 2024 income statement would show the following: Investment in bonds Income statement loss (TS) on investments a. $ 4,500,000 $ 0 b. $ 4,500,000 $ 3,600,000 C. $ 8,100,000 $ 3,600,000 d. $ 8,100,000 $ 0
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Managerial Accounting Decision Making and Motivating Performance
Authors: Srikant M. Datar, Madhav V. Rajan
1st edition
