Question
On May 1, 2007, Computervision purchased $156,000, 8% bonds, with interest payable on January 1 and July 1, for $90,234, NOT INCLUDING accrued interest. The
On May 1, 2007, Computervision purchased $156,000, 8% bonds, with interest payable on January 1 and July 1, for $90,234, NOT INCLUDING accrued interest. The bonds mature on April 1, 2015. Amortization is recorded using the straight-line method and the bonds are classified as trading. On December 31, 2010, the bonds were adjusted to their proper carrying value when their fair value was $108,685. The fair market value of the bonds on December 31, 2009 was $120,561. The fair market value of the bonds on December 31, 2009 was $120,561.
At what amount will these securities be carried on the balance sheet as of December 31, 2010?
Step by Step Solution
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
