Nichols Enterprises has an investment in 26,000 bonds of Elliott Electronics that Nichols accounts for as a security available for sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $11 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $23 per bond. Nichols should carry the Elliott investment on its balance sheet at: $598,000 $442,000, the midpoint of Nichols' range of reasonably likely valuations of Elliott. Either $286,000 or $598,000, as either are defensible valuations. $286,000