The Plutonium Company has a bond investment classified as held-to-maturity, which has a carrying value of $62,000 and a fair value of $24,000. The decline in value is considered as other than temporary. What entry should Plutonium make to record the decline in value?
A. Unrealized Loss on Value Decline 38,000Allowance for Change in FairValue of Investment 38,000
B. Investment in Held-to-Maturity Securities 38,000Realized Loss on Decline in Value 38,000
C. Realized Loss on Decline in Value 38,000Investment in Held-to-Maturity Securities 38,000
D. Unrealized Loss on Value Decline 38,000Investment in Held-to-Maturity Securities 38,000
Answer: C
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