Question
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: | Fair Value 12/31/2020 | Fair Value 12/31/2021 | Amortized Cost 12/31/2020 | Amortized Cost 12/31/2021 | ||||||||
| ABC Co. Bonds | $ | 388,000 | $ | 413,000 | $ | 380,500 | $ | 373,000 | ||||
| Trading Securities: | Fair Value 12/31/2020 | Fair Value 12/31/2021 | Cost | |||||||||
| DEF Co. Bonds | $ | 58,000 | $ | 69,000 | $ | 74,400 | ||||||
| GEH Inc. Bonds | $ | 60,000 | $ | 90,000 | $ | 52,000 | ||||||
| IJK Inc. Bonds | $ | 57,000 | $ | 51,500 | $ | 45,900 | ||||||
| Available-for-Sale Securities: | Fair Value 12/31/2020 | Fair Value 12/31/2021 | Cost | |||||||||
| LMN Co. Bonds | $ | 151,400 | $ | 165,500 | $ | 153,000 | ||||||
What balance sheet amount would Beresford report for the total of its investments in bonds at 12/31/2020?
Multiple Choice
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None of these answer choices are correct.
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$706,900.
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$714,400.
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$696,500.
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Accounting Information Systems Understanding Business Processes
Authors: Brett Considine, Alison Parkes, Karin Olesen, Michael Lee, Derek Speer
3rd Edition
