Answer Happy

4. A reclassification adjustment is
reported in the
a. income statement as an
Other revenue or expense.
b. stockholders’ equity
section of the balance sheet.
c. statement of
comprehensive income as other comprehensive income.
d. statement of
stockholders’ equity.
5. 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 lower of its
original cost or its fair value at the date of the transfer.
d. the higher of its
original cost or its fair value at the date of the transfer.