A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000.
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A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000. At the end of year 20, with 10 years remaining until maturity, the bond had a fair value of $10,200. Taking into account the discount at which the government initially purchased the bond, its amortized cost was $9,760. Assuming that it held the bond in a governmental fund, the government should report the bond at a value of
a. $0.
b. $9,760.
c. $10,000.
d. $10,200.
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Related Book For
Government And Not For Profit Accounting Concepts And Practices
ISBN: 9781119803898
9th Edition
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese
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