Bridges Inc

Multiple Choice

Bridges Inc. holds a debt investment from RiteCo and had viewed that investment as adversely affected by particular events in the market for RiteCo's products, but without specific information about deterioration of RiteCo's credit quality. However, Bridges just learned that RiteCo is entering bankruptcy. As a result of receiving this information, what is Bridges likely to do with the RiteCo investment?

A) Transfer it from Bucket 1 to Bucket 2.
B) Transfer it from Bucket 2 to Bucket 3.
C) Transfer it from Bucket 3 to Bucket 2.
D) Transfer it from Bucket 2 to Bucket 1.