QUESTION 5Company 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. OnDecember 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).18. 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).38. Will the unrealized gain be included in Year3 net income? Type Yes or No.

An investment in bond is classified as trading when investor intends to sell it quickly within one…

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. 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). 18. Will the unrealized gain be included in Year3 net income? Type Yes or No. 1 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). 38. Will the unrealized gain be included in Year3 net income? Type Yes or No.

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. 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). 18. Will the unrealized gain be included in Year3 net income? Type Yes or No. 1 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). 38. Will the unrealized gain be included in Year3 net income? Type Yes or No.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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