Refer to the FASB Codification through the student access posted in the Welcome module Indicate precisely the sections of the Codification that provide the information for your response to the question. That is, enter the code in the format: 320 - 10 - 25 - 1. White the code for each paragraph of the Codification used to respond. Answer the following questions primarily in your own words. You may quote from the Codification if needed but be sure to indicate that you are presenting a quotation. Your responses should be concise and pertinent. Please do not use highlighting or colored typeface. XYZ Company has just acquired 5,000 of the 5% bonds of RST Corporation, a major supplier for XYZ. XYZ plans to hold the bonds until they mature, unless the market rate improves considerably, in which case they would sell them to make a more profitable investment 320-10-25-1 320-10-50-1 320-10-50-5 a. How should XYZ classify this debt investment? Answer: XYZ Company should classify the investment in RST Corporation's bonds as "held-to- maturity" (HTM) if the goal is to hold the bonds unel maturity unless market circumstances considerably improve. Debt securities that a business has the intention and capacity to hold to maturity are known as held to maturity investments. As per the criteria for labeling an investment as hold-to maturity, XYZ intends to retain the bonds until their maturity unless there's a positive shift in the market. D. How will XYZ report income/(loss) from this investment on its financial statements? Answer; XYZ should report income/(ioss) from this investment in accumulated other comprehensive income saction on the balance sheet