Cortez Associates purchased a debt investment that meets the characteristics of a simple debt instrument. Cortez intends to hold the debt for purposes of maximizing its return on investment. How should Cortez account for the investment?
A) Amortized cost.
B) FV-NI.
C) FV-OCI.
D) Cost methoD.A simple debt investment that is held for purposes of maximizing return on investment is fulfilling an investment purpose, so should be accounted for as FV-OCI.
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