5.You are reviewing the December 31, 2019 financial statements of Sutur Manufacturing which has approached a lender to obtain a new line of credit. An analysis reveals the following details on each account:

• Sutur has U.S. government Treasury bonds that mature in March 31, 2020. The bonds were bought on November 20, 2019.
• Sutur has a parcel of forest that cost $40,000. Because of increases in forest prices, the value of the forest has been written up to $60,000. The company has an independent appraisal that attests to this amount.

How should these items be reported in the balance sheet?

	A.	The bonds should be classified as short-term investments in the current assets section of the balance sheet. The forest should be reported in the property, plant, and equipment category (non-current assets) at $60,000.
	B.	The bonds should be classified as cash equivalents in the current assets section of the balance sheet. The forest should be reported in the property, plant, and equipment category (non-current assets) at $40,000.
	C.	The bonds should be classified as short-term investments in the current assets section of the balance sheet. The forest should be reported in the property, plant, and equipment category (non-current assets) at $40,000.
	D.	The bonds should be classified as cash equivalents in the current assets section of the balance sheet. The forest should be reported as a long-term investment (non-current assets) at $40,000.