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please answer all parts (: Use the following information to answer parts a-c : Beta Inc. acquired $120,000 of Alpha Inc. bonds at face value

please answer all parts (:

Use the following information to answer parts a-c :

Beta Inc. acquired $120,000 of Alpha Inc. bonds at face value on April 30, 2021. The bonds pay interest at 3% on April 30, and October 31. At December 31, 2021, Beta classified the Alpha bonds as available for sale. On the same date, the market value of the bonds was $119,400. On April 30, 2022, Beta sold the Alpha bonds for $118,300.

a. For the year ended December 31, 2021, which of the following statements pertaining to Betas investment in Alpha Inc.s bonds is correct?

  • Interest revenue of $2,400 is reported under other income on the income statement.
  • An unrealized holding loss $600 is reported in other comprehensive income.
  • A and B.
  • Neither A nor B.

b .For the year ended December 31, 2022, which of the following statements pertaining to Betas investment in Alpha bonds is correct?

  • Interest revenue of $1,800 is reported under other income on the income.
  • A realized loss of $1,700 from the sale of bonds is reported under other income on the income statement.
  • A and B.
  • Neither A nor B.

c. For the year ended December 31, 2022, which of the following disclosures is reported in other comprehensive income?

  • An unrealized holding loss of $1,100.
  • A reclassification adjustment of $1,700 for the loss included in net income.
  • A and B.
  • Neither A nor B.

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