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On July 2, 2020, Gundy, Inc., purchased as a short-term investment a $1 million face-value Rudolph Co. 8% bond for $910,000 to yield 10%. The
On July 2, 2020, Gundy, Inc., purchased as a short-term investment a $1 million face-value Rudolph Co. 8% bond for $910,000 to yield 10%. The bonds mature on January 1, 2027, and pay interest annually on January 1. On December 31, 2020, the bonds had a fair value of $955,000. On February 13, 2021, Gundy sold the bonds for $890,000. In its December 31, 2020, balance sheet, what amount should Gundy report for the bond if it is classified as an available-for-sale security?
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