Purchases of long-term debt investments are never initially recorded at fair value.

Name: Purchases of long-term debt investments are never initially recorded at fair value.
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Question

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Purchases of long-term debt investments can be recorded at fair value if they meet the criteria for fair value accounting under accounting standards such as ASC 820. However, if the criteria are not met, they may be initially recorded at cost and subsequently adjusted for impairment.

Purchases of Long-Term Debt Investments Are Never Initially Recorded at Fair