In 2019, Osgood purchased $4 million worth of 10-year municipal bonds at face value. On December 31, 2021, the bonds had a fair value of $3,600,000. Assume Osgood classified the bonds as AFS. Osgood's December 31, 2021, balance sheet and the 2021 income statement would report the following: Investment in bonds Income statement loss on investments
a. $3,600,000 $ 0
b. $3,600,000 $ 400,000
c. $4,000,000 $ 400,000
d. $4,000,000 $ 0

Mr. beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the bb-1 set. (bb-1 stands for body beautiful number 1.) the carrying cost for bb-1 is $5 per set per year. to meet demand, mr. beautiful orders large quantities of bb-1 seven times a year. the stockout cost for bb-1 is estimated to be $50 per set. over the past several years, mr. beautiful has observed the following demand during the lead time for bb-1: demand during lead time probability40 0.150 0.260 0.270 0.280 0.290 0.1total 1.0the reorder point for bb-1 is 60 sets. what level of safety stock should be maintained for bb-1?