Q7. Bonds that are purchased with the intent of holding to collect contractual cash flows until the market improves are classified as A. FVOCI securities B. equity method securities C. amortized cost securities D. FVTPL securities Q8. Which of the following is a contingency that should be recognized as a provision? A. The company is being sued and a loss is reasonably possible and reasonably estimable. B. The company deducts life insurance premiums from employees' paychecks. C. It is probable that the company will receive $100,000 in settlement of a lawsuit. D. The company offers a two-year warranty and the expenses can be reasonably estimated. Q9. An asset acquired using a long-term note payable always will be recorded at the face amount of the note under which scenario? A. The note is a noninterest-bearing note. B. Interest on the note is not payable until the note is due. C. The note payable explicitly requires the payment of interest at a realistic interest rate. D The company expects to use the asset for its entire physical life. Q10. Bert Co. purchased several investments in debt securities during 2022. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held in a Business Fair Value, Model to Collect Contractual Cash Flows (CCF) Fair Value, Amortized Cost, Amortized Cost, December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 ABC Co. Bonds $375,000 $400,000 $367,500 Held for Trading Fair Value, Fair Value, Cost Securities: December 31, 2022 December 31, 2023 DEF Co. Bonds $48,000 $59,500 $66,000 GEH Inc. Bonds $47,000 $77,000 $39,000 IJK Inc. Bonds $44,000 $38,500 $32,900 Held in a Business Model to Collect Fair Value, Fair Value, Cost December 31, 2022 December 31, 2023 CCF and to Sell: $130,500 $150,400 $140,000 $360,000 LMN Co. Bonds What statement of financial position amount would Bert Co. report for the total of its investments in debt securities on 12/31/2022? A. $645,400 B. $644,500 C. $637,000 D. $636,000