Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TB MC Qu. 12-30 (Algo) Beresford Inc. purchased several investments... Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations.
TB MC Qu. 12-30 (Algo) Beresford Inc. purchased several investments... 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 Fair Value 12/31/2020 $389,000 Fair Value 12/31/2021 $414,000 Amortized Cost 12/31/2020 $381,500 Amortized Cost 12/31/2021 $374,000 Trading Securities: DEF Co. Bonds GEH Inc. Bonds IJK Inc. Bonds Fair Value 12/31/2020 $ 59,000 $ 61,000 $ 58,000 Fair Value 12/31/2021 $ 70,000 $ 91,000 $ 52,500 Cost $ 75, 400 $ 53,000 $ 46,900 Cost Available-for-Sale Securities: LMN Co. Bonds Fair Value 12/31/2020 $153,400 Fair Value 12/31/2021 $166, 700 $154,000 What balance sheet amount would Beresford report for the total of its investments in bonds at 12/31/2020? Multiple Choice $712,900 $720,400. $700,700. 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