A held-to-maturity debt investment with a book value of $6,000,000 is determined to be impaired...
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Accounting
A held-to-maturity debt investment with a book value of $6,000,000 is determined to be impaired due to concerns about the investee's ability to pay principal and interest. The investment's current market value is $4,000,000. Assume the bonds were originally sold at par. Which statement is true?
A. $2,000,000 loss is reported in income.
B. $2,000,000 loss is reported in OCI.
C. No loss is reported.
D. The investment account is directly reduced by $2,000,000.
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