Dicker Furriers purchased 1,000 bonds of Loose Corporation on January 10, 2020, for $800 per...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Dicker Furriers purchased 1,000 bonds of Loose Corporation on January 10, 2020, for $800 per bond and classified the investment as securities available-for-sale. Loose's market value was $400 per bond on December 31, 2020, and the decline was due to a noncredit loss. As of December 31, 2021, Dicker still owned the Loose bonds whose market value had declined to $100 per bond. The additional decline is due to a credit loss of $300 per bond. During 2021 Dicker determined for the first time that it was more likely than not that it would have to sell the Loose investment before fair value recovers. Dicker's December 31, 2021, balance sheet and the 2021 income statement would show the following:
|
| Investment in Loose bonds | Income statement loss on investments | ||||
| a. | $ | 100,000 |
| $ | 700,000 |
|
| b. | $ | 100,000 |
| $ | 300,000 |
|
| c. | $ | 800,000 |
| $ | 0 |
|
| d. | $ | 500,000 |
| $ | 300,000 |
|
A) Option a.
B) Option b
C) Option c.
D) Option d.
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.