Trottier Ltd. has a single debt investment that it accounts for using FV-OCI recycled to net income.
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Trottier Ltd. has a single debt investment that it accounts for using FV-OCI recycled to net income. The carrying value of the debt investment on July 1 after the collection of interest and amortization of premium was $72,500. To date, $1,500 of unrealized losses in fair value adjustments have been recorded to other comprehensive income. On July 1, when the market value of the investment is $72,000, Gauthier sold the debt investment. Using the three-step approach, record the July 1 entries for the sale and reclassification (recycling) entry to net income.
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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