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Trading Available-for-Sale
Cost $360,000 $550,000
Fair value 320,000 450,000
Lower of cost or fair value applied to each security 304,000 420,000
If the declines are judged to be temporary, what amounts should XYZ report for its trading and available-for-sale securities in the assets section of its December31 balance sheet?
Trading Available-for-Sale
A. $360,000 $550,000
B. $360,000 $450,000
C. $320,000 $450,000
D. $304,000 $420,000
C- is the correct answer as these shows the fair value changes.