Question
On January 12, 2021, Japan Airlines Co. purchased bonds of Iron Mountain Inc. for $44 million at par and classified the securities as available-for-sale (AFS).
On January 12, 2021, Japan Airlines Co. purchased bonds of Iron Mountain Inc. for $44 million at par and classified the securities as available-for-sale (AFS). On December 31, 2021, these bonds were valued at $38 million. Nine months later, on October 3, 2022, Japan Airlines Co. sold these bonds for $51 million. After updating the Fair Value Adjustment account to reflect the bonds' value as of October 3, 2022, Japan Airlines Co. should take the second step of:
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Debiting the Gains/Losses on Inv. (Unrealized, OCI) account $19 million.
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Debiting the Gains/Losses on Inv. (Unrealized, OCI) account $13 million.
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Debiting the Gains/Losses on Inv. (Unrealized, OCI) account $7 million.
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Debiting the Gains/Losses on Inv. (Unrealized, OCI) account $6 million.
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
