Nichols Enterprises has an investment in 30,500 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 $13 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $20 per bond. Nichols should carry the Elliott investment on its balance sheet at:

Multiple Choice

A $610,000.

B Either $396,500 or $610,000, as either are defensible valuations.

C $503,250, the midpoint of Nichols's range of reasonably likely valuations of Elliott.

D $396,500.