A debt service fund paid $2,000,000 for securities for use as income investments during the...
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Accounting
A debt service fund paid $2,000,000 for securities for use as income investments during the year. During the year, $30,000 of investment income is received in cash. At year-end, the fund still holds the securities, and their market value has declined to $1,990,000. How is this reported by the debt service fund?
A. Investments, $2,000,000 on the balance sheet, and investment income of $20,000 on the operating statement.
B. Investments, $1,990,000 and deferred outflows, $10,000 on the balance sheet and investment income of $30,000 on the operating statement.
C. Investments, $1,990,000 on the balance sheet, and investment income of $20,000 on the operating statement.
D. Investments, $2,000,000 on the balance sheet, and investment income of $30,000 on the operating statement.
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