Which the entity business model for the investment must be

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Problem 1: Boss Co. purchased investment in bonds at a discount. The bonds will be held until maturity in order to collect their contractual cash flows. Boss should account for these bonds at

a. cost.

b. FOCI.

c. amortized cost.

d. lower of cost or market.

Problem 2: An entity acquires investment in equity securities and appropriately capitalizes the transaction costs. The entity's business model for the investment must be

a. 'hold to collect'.

b. 'hold for trading'.

c. 'hold to collect and sell'.

d. none of these.

Reference no: EM132752631

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