Bentley Company acquires Joslyn Company debt securities on Januart 1, 2020 for $15,000. Upon acquisition, Bentley Company designates the securities as available for sale. Bentley Company sells the Joslyn Company debt securities for $20,000 on Febraury 1, 2021. The following table summarizes the fair value of the Joslyn Company debt securities over the holding period. Date Fair value 1/1/2020 $15,000 12/31/2020 18,000 2/1/2021 20,000 How should Bentley Company record the: Acquisition of the debt securities Subsequent changes in fair value of the debt securities Disposition of the debt securities?
Bentley Company acquires Joslyn Company debt securities on Januart 1, 2020 for $15,000. Upon acquisition, Bentley Company designates the securities as available for sale. Bentley Company sells the Joslyn Company debt securities for $20,000 on Febraury 1, 2021. The following table summarizes the fair value of the Joslyn Company debt securities over the holding period. Date Fair value 1/1/2020 $15,000 12/31/2020 18,000 2/1/2021 20,000 How should Bentley Company record the: Acquisition of the debt securities Subsequent changes in fair value of the debt securities Disposition of the debt securities?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bentley Company acquires Joslyn Company debt securities on Januart 1, 2020 for $15,000. Upon acquisition, Bentley Company designates the securities as available for sale. Bentley Company sells the Joslyn Company debt securities for $20,000 on Febraury 1, 2021. The following table summarizes the fair value of the Joslyn Company debt securities over the holding period.
Date | Fair value |
1/1/2020 | $15,000 |
12/31/2020 | 18,000 |
2/1/2021 | 20,000 |
How should Bentley Company record the:
- Acquisition of the debt securities
- Subsequent changes in fair value of the debt securities
- Disposition of the debt securities?
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