Company has a calendar reporting year. Company purchased a 6-year bond for $100,000 on December 20
Company has a calendar reporting year. Company purchased a 6-year bond for $100,000 on December 20, Year3. The bond was purchased at face value. On December 31, Year3 the fair value of the bond was $102,000.
1. Assume the bond will be sold in early January, Year4.
1A. At what amount will the bond be reported on the balance sheet at 12/31/Year3? Type 100,000 or 102,000(you can use commas).
1B. Will the unrealized gain be included in Year3 net income? Type Yes or No
2. Assume the bond will be held for a few years and then sold.
2A. At what amount will the bond be reported on the balance sheet at 12/31/Year3? Type 100,000 or 102,000(you can use commas).
2B. Will the unrealized gain be included in Year3 net income? Type Yes or No.
3. Assume the bond will be held until maturity.
3A. At what amount will the bond be reported on the balance sheet at 12/31/Year3? Type 100,000 or 102,000(you can use commas).
3B. Will the unrealized gain be included in Year3 net income? Type Yes or No.
Best Answer
Option 1
1A. 100,000
1B. No
此内容售价The price for this content is ¥4,请点击购买按钮使用支付宝进行支付! Please pay with Alipay to view the full content!购买内容 Unlock full accessNo, the unrealized gain will not be included in Year3 net income because the gain has not yet been realized. Gains must be realized in order to be included in net income, and since the bond will not be sold until maturity, the gain has not been realized and thus it cannot be included in Year3 net income.
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