On january 1, year 1, broglie company purchased $922,000 of bonds issued by caro company at face value. broglie had the positive intent and ability to hold debt securities to maturity. on december 31, year 1, those bonds had a fair value of $950,000. that change in fair value was deemed to be temporary. due to a change in circumstances, broglie sold those bonds for $976,000 on march 1, year 2. what is the amount of the gain that will be reported in net income for year 2?

zero

The adjustment will be made to other comprehensive income

Explanation:

At December 31th the company wasn't using the fair value method. It was using the amortised cost method. The objective was to hold assets ito maturity.

When the bonds were sold on March 1 Year 2

The Company will have to reclassifies their financial assets. And use the Fair value through other comprehensive income method.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.