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King Company has the following investment portfolio:

  Cost         Fair Value

Trading securities: Quill Company common stock $140,000      $150,000

Barton, Inc., common stock125,000        110,000

Delta, Inc.,8% bonds225,000        240,000

Securities to be held to maturity:

Armand, Inc.,9% bonds80,000        84,000

Port City municipal bonds180,000       210,000

Available-for-sale securities:

Knox Co. common stock45,000        51,000

Vernon, Inc., preferred stock97,000      109,000

The total amount of these investments to be reported on King’s statement of financial position is

A. $892,000

B. $902,000

C. $920,000

D. $954,000

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Question added by Deleted user
Date Posted: 2015/02/22
Deleted user
by Deleted user

Total amount of investment should be $920,000 . Option C .

Muhammad Aamir Jahangir
by Muhammad Aamir Jahangir , Manager Accounts , AMCORP Engineering and Construction (Pvt) Ltd.

Cost should be shown for investment is $892,000/- and

Fair value of investment should be $954,000/-

Unrealized Gain in investment should be shown &62,000/-

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