Multiple Choice Question On December 31, 2024, Sparrow Company has bonds with an amortized cost of $424,000 and a fair value of $452,000. These bonds are properly classified as AFS securities. On January 12, 2025, Sparrow sells the bonds for $450,000. Just prior to recording the sale on January 12, 2025, the journal entry to adjust the bonds to fair value will include Multiple choice question. A debit to fair value adjustment $2,000 A credit to fair value adjustment $28,000 A debit to unrealized holding loss - OCI $2,000 A credit to unrealized holding gain - net income $28,000

Answer rating: 100% (QA)

The correct answer is A credit to fair value adjus... View the full answer