A company buys corporate bonds for $100 in 2019. At the end of 2019, the company still holds the investment and it has a market value of $115. In 2020, the company sells the investment for $108. How is this information reported in the company's 2019 and 2020 income statements if the investment is classified as an AFS investment?
A) $15 gain on the 2019 income statement; $7 loss on the 2020 income statement
B) Does not appear on the 2019 income statement; $8 gain on the 2020 income statement
C) Does not appear on the 2019 income statement; $7 loss on the 2020 income statement
D) $8 gain on the 2019 income statement; does not appear on the 2020 income statement
Correct Answer:
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