If Dizbert Company Concluded That an Investment Originally Classified as Available

Multiple Choice

If Dizbert Company concluded that an investment originally classified as available for sale would now more appropriately be classified as held to maturity, Dizbert would:

A) Not reclassify the investment, as original classifications are irrevocable.
B) Reclassify the investment as held to maturity and immediately recognize in net income any unrealized holding gain or loss on the reclassification date.
C) Reclassify the investment as held to maturity and treat the fair value as of the date of reclassification as the investment's amortized cost basis for future amortization.
D) Need to restate earnings, as the original classification was in error.