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In Accounting for Debt Investments That Are Classified as Trading

Question 22

Multiple Choice

In accounting for debt investments that are classified as trading investments,


A) any unrealized gain (loss) is reported as part of equity.
B) a premium is reported separately.
C) the fair value is compared to amortized cost to compute any unrealized gain (loss) .
D) no discount or premium amortization is required.

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