Concept introduction:
Held-to-Maturity Investments:
The investments when purchased are required to be classified on the basis of factors include –
a. Intent to hold investment
b. Length of time i.e. till maturity.
When it is given that the investment has been purchased with the intent to hold till maturity it is considered as Held-to-maturity investment.
Requirement 1:
To prepare:
Requirement 2:
Cash interest that Advance & Co will receive from FermaCo each year.
Requirement 3:
The interest revenue that Advance will report during 2018 on this bond investment.
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