In 2019, Osgood Corporation purchased $8.5 million worth of 10-year municipal bonds at face value. On December 31, 2021, the bonds had a fair value of $2,800,000 and Osgood reclassified the bonds from held-to-maturity to trading securities. Osgood's December 31, 2021, balance sheet and the 2021 income statement would show the following: Investment in bonds (TS) Income statement loss on investments a. $ 2,800,000 $ 0 b. $ 2,800,000 $ 5,700,000 c. $ 8,500,000 $ 5,700,000 d. $ 8,500,000 $ 0 Option b. Option d. Option c. Option a.

In 2019, Osgood Corporation purchased $8.5 million worth of 10-year municipal bonds at face value. On December 31, 2021, the bonds had a fair value of $2,800,000 and Osgood reclassified the bonds from held-to-maturity to trading securities. Osgood's December 31, 2021, balance sheet and the 2021 income statement would show the following: Investment in bonds (TS) Income statement loss on investments a. $ 2,800,000 $ 0 b. $ 2,800,000 $ 5,700,000 c. $ 8,500,000 $ 5,700,000 d. $ 8,500,000 $ 0 Option b. Option d. Option c. Option a.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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