Question
Sunbucks owns the following debt security: KBM Company 6 year bond: (AFS security) Amortized Cost on 12/31/YR 1: $3,450 Fair value on 12/31/YR 1:
Sunbucks owns the following debt security: KBM Company 6 year bond: (AFS security) Amortized Cost on 12/31/YR 1: $3,450 Fair value on 12/31/YR 1: $3,900 Amortized Cost on 12/31/YR 2: $3,555 Fair value on 12/31/YR 2: $4,189 Total interest revenue earned during Year 2: $202 Total interest cash received during Year 2: $184 Assess all the transactions related to this investment for Year 2. What is the total impact to Sunbucks net income for Year 2 for this bond? If net income increases, just put the number. If it decreases, but a - sign in front of your number.
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
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