Answer:
$70,000 loss
Explanation:
Cromwell corporation bought bonds of Oliver company at par at $300,000 in the year 2021
In 2022, the market value reduced to $200,000
In the year 2023, The market value rose to $230,000
Therefore the amount that should be recorded be Cromwell corporation as its realized loss or gain in the determination of net income for 2023 can be calculated as follows
= $230,000 - $300,000
= -$70,000
= $70,000 loss
Hence the amount that should be recorded by Cromwell corporation is $70,000 loss
