On March 17, 2017, Union Corporation purchased 500 bonds of AZQ common as a long-term investment at $400 per bond. On December 31, 2017, and December 31, 2018, the market value of the AZQ bonds is $420 and $430, respectively.
Required:
(1.) What is the appropriate reporting category for this investment? Why?
(2.) Prepare the adjusting entry on December 31, 2017.
(3.) Prepare the adjusting entry on December 31, 2018.
Correct Answer:
Verified
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