Question
On January 1, 2016, Hillenbrand purchased 12-year, 12% bonds having maturity a value of $781,000. Interest is paid annually on December 31 and the bonds
On January 1, 2016, Hillenbrand purchased 12-year, 12% bonds having maturity a value of $781,000. Interest is paid annually on December 31 and the bonds provide the bondholders a 7% yield. Hillenbrand uses the effective-interest method to amortize discount or premium.
At the time of acquisition, the bonds were classified as available-for-sale. The fair value of the bonds on December 31, 2018 is $756,000. The fair value of the bonds as of December 31 of the immediately preceding year (prior measurement date) was $768,000.
Based on the foregoing facts, what is the balance in the Securities Valuation Account for this security as of December 31, 2018? (Note: If the balance is a credit balance, enter a minus sign '-' prior to the amount. If the balance is a debit balance, enter the amount as an absolute number.)
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