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When are companies required to amortize away the premium on a bond receivable? Companies never amortize away premiums. Only discounts need to be amortized. When

When are companies required to amortize away the premium on a bond receivable?

Companies never amortize away premiums. Only discounts need to be amortized.

When the company has classified the bond receivable as a held-to-maturity security.

Any time the company reports a balance in the premium account.

When the company has classified the bond receivable as a trading security.

Under U.S. GAAP, what value should companies report on the balance sheet for their available-for-sale securities portfolio?

Net amortized value.

Historical cost.

Carrying value.

Market value.

Which of the following transactions is NOT typically made for an investment classified as an equity security?

The change in market value.

The report of a net profit.

The initial purchase.

The receipt of a dividend check.

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