Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: ABC Co. Bonds Trading Securities: Fair Value 12/31/2020 $381,000 Fair Value 12/31/2020 Fair Value Amortized Cost Amortized Cost 12/31/2021 12/31/2021 $366,000 $406,000 Fair Value 12/31/2021 $ 62,000 12/31/2020 $373,500 Cost $ 68,000 DEF Co. Bonds $ 54,000 GEH Inc. Bonds $ 53,000 $ 83,000 $ 45,000 IJK Inc. Bonds $ 50,000 $ 44,500 $ 38,900 Available-for-Sale Fair Value Securities: LMN Co. Bonds 12/31/2020 $140,700 Fair Value 12/31/2021 $153,100 Cost $146,000 What balance sheet amount would Beresford report for the total of its investments in bonds at 12/31/2020? Multiple Choice $671,200. $678,700. $666,100. None of these answer choices are correct
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started