Chapter D, Problem 1AP

a.

To determine

Indicate the amount, Company C reports the trading bond investments at, on its balance sheet as of December 31, 2016.

b.

To determine

Indicate the amount, Company C reports the available-for-sale bond investments at, on its balance sheet as of December 31, 2016.

c.

To determine

Indicate the amount, Company C reports the held-to-maturity bond investments at, on its balance sheet as of December 31, 2016.

d.

To determine

Ascertain the amount of unrealized holding gains and losses related to bond investment, Company C reports on the income statement.

e.

To determine

Ascertain the amount of unrealized holding gains and losses related to bond investment, Company C reports on the stockholders’ equity section of balance sheet.

f.

To determine

Compute the amount that appears in the Fair Value Adjustment to Bond Investment account on the balance sheet of Company C, indicate the type of bond investment that is related to the said valuation account, and indicate whether the valuation account increases or decreases the bond investment.