The Plutonium Company has a bond investment classified as held-to-maturity, which has a carrying value of $62,000 and a fair value of $24,000. The decline in value is considered as other than temporary. Plutonium should record the decline as

a). Unrealized Loss on Value Decline 38,000
Allowance for Change in Fair
Value of Investment 38,000

b). Investment in Held-to-Maturity Securities 38,000
Realized Loss on Decline in Value 38,000

c). Realized Loss on Decline in Value 38,000
Investment in Held-to-Maturity Securities 38,000

d). Unrealized Loss on Value Decline 38,000
Investment in Held-to-Maturity Securities 38,000

Answer rating: 100% (QA)

AnswerC Since the loss is permanen... View the full answer