On February 18, 2024, Union Corporation purchased 600 IBM bonds as a long-term investment at their face
Question:
On February 18, 2024, Union Corporation purchased 600 IBM bonds as a long-term investment at their face value for a total of $600,000. Union will hold the bonds indefinitely, and may sell them if their price increases sufficiently. On December 31, 2024, and December 31, 2025, the market value of the bonds was $580,000 and $610,000, respectively.
Required:
1. What is the appropriate reporting category for this investment? Why?
2. Prepare the adjusting entry for December 31, 2024.
3. Prepare the adjusting entry for December 31, 2025.
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Requirement 1 Securities heldtomaturity are debt securities that an investor has the positive intent ...View the full answer
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