In 1993, SunTrust Bank of Atlanta reported investment securities on its balance sheet of $10,644 million, an

Question:

In 1993, SunTrust Bank of Atlanta reported investment securities on its balance sheet of $10,644 million, an increase over the $8,715 million reported for 1992. Footnotes revealed that most of the securities were interest-bearing debt securities. But $1,077 million of the 1993 securities were shares held in the Coca-Cola Company, carried at market value. In 1992, the bank had carried these securities on the balance sheet at their historical cost of $110 million. Which carrying value for the Coca-Cola shares do you see as the better quality number, the market value or the historical cost?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...