What valuation must be reported for debt securities


1. If a company purchases its only long-term investments in available-for-sale debt securities this period and their fair value is below cost at the balance sheet date, what entry is required to recognize this unrealized loss?

2. On a balance sheet, what valuation must be reported for debt securities classified as available-for-sale?

3. Under what circumstances are long-term investments in debt securities reported at cost and adjusted for amortization of any difference between cost and maturity value?

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Cost Accounting: What valuation must be reported for debt securities
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