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As of December 31, 2023, ABC had a bond investment with a book value of $95,000. The principal of the bonds is $100,000. The market value of this investment on December 31, 2023 was $102,000. Suppose the investment was classified as Available for Sale (AFS), for how much will it be reported on the Balance Sheet as of 12/31/23?

1 Answer

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Final answer:

The bond investment, classified as Available for Sale (AFS) and with a market value of $102,000, will be reported on the Balance Sheet at $102,000 as of 12/31/2023.

Step-by-step explanation:

As of December 31, 2023, ABC had a bond investment with a book value of $95,000. The principal of the bonds is $100,000. The market value of this investment on December 31, 2023, was $102,000. If the investment is classified as Available for Sale (AFS), it will be reported on the Balance Sheet at its fair market value. Therefore, the bonds will be reported on the Balance Sheet as of 12/31/23 at $102,000.

answered
User Akira Fukushima
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