In 2016, Osgood Corporation purchased $4 million of 10-year municipal bonds at face value. On December 31, 2018, the bonds had a fair value of $3,600,000 and Osgood reclassified the bonds from held to maturity to trading securities. Osgood's December 31, 2018, balance sheet and the 2018 income statement would show the following:

Question

Quizplus · Accepted Answer

The unrealized holding loss ($400,000) on transfer to new category of trading securities is included in income.

In 2016, Osgood Corporation Purchased $4 Million of 10-Year Municipal