Question
Patrick Corporation buys and sells debt securities which it classifies as securities available-for-sale. The company's fiscal year ends on December 31. On December 27, 2022,
Patrick Corporation buys and sells debt securities which it classifies as securities available-for-sale. The company's fiscal year ends on December 31. On December 27, 2022, Patrick purchased Tomorrow Communications bonds at par for $620,000. At December 31, the bonds had a fair value of $641,000. On January 3, 2023, the bonds were sold for $678,000. If Patrick records unrealized holding gains and losses up to the moment of sale, what would be the amount of reclassification adjustment---OCI that Patrick would record upon sale?
O A debit of $37,000.
O A credit of $50,000.
O A debit of $58,000.
A credit of $21,000.
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