Dim Corporation purchased 1,000 bonds of Witt Corporation in 2015 for $800 per bond and classified the investment as securities available for sale. The value of these holdings was $400 per bond on December 31, 2016, and $300 on December 31, 2017. During 2018, Dim sold all of its Witt bonds at $350 per share.
-In its 2018 income statement, Dim would report:

Question

Dim Corporation purchased 1,000 bonds of Witt Corporation in 2015 for $800 per bond and classified the investment as securities available for sale. The value of these holdings was $400 per bond on December 31, 2016, and $300 on December 31, 2017. During 2018, Dim sold all of its Witt bonds at $350 per share. 
-In its 2018 income statement, Dim would report:

Quizplus · Accepted Answer

As part of year-end fair-value adjustment, Dim would remove any previously recorded fair-value adjustment and accumulated other comprehensive income associated with the Witt investment.

Dim Corporation Purchased 1,000 Bonds of Witt Corporation in 2015