When an Investment in a Held-To-Maturity Security Is Transferred to an Available-For-Sale

question 43

Multiple Choice

When an investment in a held-to-maturity security is transferred to an available-for-sale debt security, the carrying value assigned to the available-for-sale debt security should be

• A) Its original cost
• B) Its fair value at the date of the transfer
• C) The higher of its original cost or its fair value at the date of the transfer.
• D) The lower of its original cost or its fair value at the date of the transfer.

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Definitions:

Screening

The process of testing or examining individuals for the presence of diseases or conditions before symptoms are apparent.

Physical Therapy

A branch of rehabilitative healthcare that uses specially designed exercises and equipment to help patients regain or improve their physical abilities.

Dangerous Side Effects

Adverse reactions to drugs or treatments that can pose serious health risks or complications to the patient.

Medications

Substances used to diagnose, treat, or prevent illness and improve health.