Question: On January 1 , 2 0 2 1 , Delta, Inc. has a held - for - collection debt investment in the bonds of Western

On January 1,2021, Delta, Inc. has a held-for-collection debt investment in the bonds of Western Company with a amortized cost of 700,000. On December 31,2021, Delta Company decided to choose the fair value option for evaluating of its debt investments. At that time the fair value of the debt investments was 750,000. The gain will be recorded as which of the followings:
A. Debit the debt investments by 50,000.
B. Credit the debt investments by 50,000.
C. Debit the fair value adjustment by 50,000.
D. None of the above.
On January 1,2021, Delta, Inc. has a held-for-collection debt investment in

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

A manufacturer is considering alternatives for building new plants, to be located closer to three of its primary customers with whom it intends to develop long-term, sole-supplier relationships. The...

Q:

Problem 5-6 Pearl Inc. had the following balance sheet at December 31, 2019. Cash Accounts receivable Investments Plant assets (net) Land PEARL INC. BALANCE SHEET DECEMBER 31, 2019 $21,470 Accounts...

Q:

Unilever is currently evaluating a new project (called Stay Healthy) to produce organic and vegan food. The project will require an initial outlay of 65m and is expected to have a three-year life...

Q:

Question 22 Which of the following is a current liability? A long-term debt maturing currently, which is to be paid with cash in a sinking fund A long-term debt maturing currently, which is to be...

Q:

how is the deferred loss calculated on problem 38? other soloutions have a different number. ch08 Student: ___________________________________________________________________________ 1. Cutler...

Q:

Hello I need answer 1,3,6,7,9,11,14,17 & 21 Pls? JWCL543_ch14_01-06.qxd 6/4/11 8:36 AM Page 1 B EXERCISES 2 E14-1B (Classification of Liabilities) Presented below are various account balances of...

Q:

Hello I need answer 1,3,6,7,9,11,14,17 & 21 Pls? JWCL543_ch14_01-06.qxd 6/4/11 8:36 AM Page 1 B EXERCISES 2 E14-1B (Classification of Liabilities) Presented below are various account balances of...

Q:

Question 6 Mortenson Corporation sells its product, a rare metal, in a controlled market with a quoted price applicable to all quantities. The total cost of 5,000 pounds of the metal now held in...

Q:

Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments during December 2021: One hundred and thirty of Donald Company's $1,000 bonds. The bonds pay...

Q:

Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments during December 2021: One hundred and thirty of Donald Company's $1,000 bonds. The bonds pay...

Q:

I would need to fill up the following forms: -Form 1120-S -Form 1125-A -Form 1125-E -Form 1120 Schedule D -Form 1120 Schedule K-1 -Form 4562 The due date is Monday 12th December so I would really...

Q:

What is the Histogram, and why Histogram Analysis is important in Descriptive Statistics?

Q:

Repeat Problem 35 for the case where there are three wires attached to the ceiling at the three corners of an equilateral triangle. A 100-pound chandelier is held in place by four wires attached to...

Q:

Assume the following ratios are constant: Total asset turnover 3 . 0 0 Profit margin 5 . 9 % Equity multiplier 1 . 5 0 Payout ratio 3 5 % What is the sustainable growth rate?

Q:

https://media.cheggcdn.com/media/e59/e5900ba1-02b0-44ab-8246-fb980e24e7c1/phpDkQ6Ux

Q:

How well are they perceived by key individuals within the organization?

Q:

How often do you meet to review the effectiveness of what they are providing?

Q:

5. How does the legal structure of your business influence the type of leadership that is required? For example, partnership, private vs public ownership, etc.