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when an investment in a held-to-maturity security is transferred to an available-for-sale security, the carrying value assigned to the available-for-sale security should be group of answer choices its market value at the date of the transfer. the lower of its original cost or its market value at the date of the transfer. its original cost. the higher of its original cost or its market value at the date of the transfer.

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The carrying value assigned to the available-for-sale security should be its fair value at the date of the transfer.

The carrying value of an investment that is changed from being "held until maturity" to being "available for sale" should be set at the higher of the investment's original cost or its fair market value as of the transfer date.

This is done so that the security's appreciation when it was a "held-to-maturity" security will be included in the transfer price. As the carrying value assigned to the security that is being offered for sale, the fair value as of the transfer date should be utilized.

The purpose of purchasing HTM securities is to hold them till maturity. For instance, a corporation's management might spend money on a bond that they want to hold onto until it matures.

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