Cortez Associates Purchased a Debt Investment That Meets the Characteristics

question 75

Multiple Choice

Cortez Associates purchased a debt investment that meets the characteristics of a simple debt instrument. Cortez intends to hold the debt for purposes of maximizing its return on investment. How should Cortez account for the investment?

• A)Amortized cost.
• B)FV-NI.
• C)FV-OCI.
• D)Cost methoD.A simple debt investment that is held for purposes of maximizing return on investment is fulfilling an investment purpose, so should be accounted for as FV-OCI.

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Definitions:

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