Fred has the following data r e garding an available for sale debt security: YEAR ONE...

Fred has the following data r e garding an available for sale debt security:

YEAR ONE PURCHASE PRICE	2,000
12/31 YEAR ONE FAIR MARKET VALUE	3,000
YEAR TWO SALES PRICE	5,000

What is the amount of debit entry to OCI when instrument is sold in year 2?

What is the amount of recognized gain on income statement when instrument is sold in year 2?

Expert Solution

ekkarill92 answered 2 years ago

When a debt security is appropriately carried and reported as securities available for sale, a gain...

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