Question
Visa Inc. purchased 10,000 Fresenius Medical Care bonds in 2018 for $66 per bond and classified the investment as available-for-sale (AFS) securities. The value of
Visa Inc. purchased 10,000 Fresenius Medical Care bonds in 2018 for $66 per bond and classified the investment as available-for-sale (AFS) securities. The value of the Fresenius Medical Care investment was $81 per bond on December 31, 2019, and $92 per bond on December 31, 2020. During 2021, Visa Inc. sold all of its Fresenius Medical Care investment at $148 per bond. In its 2021 income statement (as part of Net Income), Visa Inc. would report:
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A gain of $820,000.
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A gain of $1,080,000.
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A gain of $260,000.
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A gain of $560,000.
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Intermediate Accounting
Authors: David Spiceland
11th Edition
9781264134526
