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TYCO Inc. purchased several investments in debt securities during 2018, its first year of operations. The following information pertains to these securities. The fluctuations in

TYCO Inc. purchased several investments in debt securities during 2018, 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

12/31/2017

Fair Value

12/31/2018

Amortized Cost

12/31/2017

Amortized Cost

12/31/2018

ABC Co. Bonds

$

375,000

$

400,000

$

367,500

$

360,000

Trading Securities:

Fair Value

12/31/2017

Fair Value

12/31/2018

Cost

DEF Co. Bonds

$

48,000

$

59,500

$

66,000

GEH Inc. Bonds

$

47,000

$

77,000

$

39,000

IJK Inc. Bonds

$

44,000

$

38,500

$

32,900

Available for Sale

Securities:

Fair Value

12/31/2017

Fair Value

12/31/2018

Cost

LMN Co. Bonds

$

130,500

$

150,400

$

140,000

What balance sheet amount would TYCO report for the total of its investments in debt securities at 12/31/2017?

A) $637,000.

B) $644,500.

C) $645,400.

D) None of these answer choices are correct.

Note: Can you show me step-by-step why the correct answer is A. $637,000? Please show your calculations and explanations on Word or Excel as handwriting can be difficult to read. I appreciate it.

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