38. When management changes its intent with respect to an investment in debt securities and transfers it from one category to another, such transfer will be made: a. At amortized cost on the transfer date b. At market value on the date of transfer c. At the lower of market value or amortized cost on the transfer date d. At the higher of amortized cost or market value on the transfer date 39. When a transfer is made from the category of "Available for sale" to "To hold until maturity", the difference between market value and amortized cost: a. NOT recognized b. It is recognized as gain in the Statement of Income and Expenses. c. It is recognized in ICAO and is reclassified to the statement of income and expenses when the investment is sold d. It is recognized in ICAO and amortized together with the premium or discount of the hond 40. State which of the following three statements is (are) true. Qne-An, investment in a debt security classified as "Hold to Maturity" is impaired when "it is probable that the investor will not be able to collect all amounts due in accordance with the contractual terms. Two: The investment is reduced to its market value and said market value is the new cost (new cost basis) Three: The corresponding debit is to "Provision for doubtful accounts". a. Qnly statement Qne is true b.Both Statement One and Statement Two are true. c. All three,statements are true d. None of the three statements is true. 41. When a bond classified as "available for sale" has been impaired: a. A loss is recognized using the CECL model b.A loss is recognized that may NOT exceed the difference between the amortized cost and the market value. c. No loss is recognized because the company is going to sell the bond immediately. d.A loss is recognized as "Other comprehensive income