A company (the investor) purchased $800,000 of 9%, 10-year bonds from the investee on January...
60.1K
Verified Solution
Link Copied!
Question
Accounting
A company (the investor) purchased $800,000 of 9%, 10-year bonds from the investee on January 1, 2020 and classified the bonds as available-for-sale. The bonds sold for $658,250. Using the effective-interest method, the investor company amortized the premium/discount for the investee bonds by $114 and $231 on 12/31/2020 and 12/31/2021, respectively (assumed).
At December 31, 2020, the fair value of the investee bonds was $833,000.
At December 31, 2021, the fair value of the investee bonds was $932,000.
What should the investor company report as unrealized holding gains or losses for the year ended on 12/31/2021?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.