If Dinsburry Company Concluded That an Investment Originally Classified as a Trading

question 21

Multiple Choice

If Dinsburry Company concluded that an investment originally classified as a trading security would now more appropriately be classified as held to maturity,Dinsburry would:

• A)Not reclassify the investment,as original classifications are irrevocable.
• B)Reclassify the investment as held to maturity and immediately recognize in net income all unrealized gains and losses that have not already been recognized as of the reclassification date.
• C)Reclassify the investment as held to maturity and treat the fair value as of the date of reclassification as the investment's amortized cost basis for future amortization. .
• D)Reclassify the investment as held to maturity,but there would be no income effect.

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