Question: On March 1 7 , 2 0 2 0 , Union Corporation purchased 5 0 0 bonds of AZQ as a long - term investment

On March 17,2020, Union Corporation purchased 500 bonds of AZQ
as a long-term investment at $400 per bond. On December 31,2020,
and December 31,2021, the market value of the AZQ bonds is $420
and $430, respectively.Required: (1.) What is the appropriate reporting category for
this investment? Why? (2.) Prepare the adjusting entry on December
31,2020.(3.) Prepare the adjusting entry on December 31,
2021.

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