On December 31, Ott Co. had investments in trading securities as follows:

Question

Cost Fair value

Man Co. $10,000 $8,000

Kemo, Inc.9,000 11,000

Fenn Corp.11,000 9,000

$28,000 $30,000 Total

Ott’s December31 balance sheet should report the trading securities as

A. $26,000

B. $28,000

C. $29,000

D. $30,000

Sheraz Ahmad · Answer

B. $28,000 if that's held for trading

Ahmed kandil · Answer

Accept with mr krishna ....

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

Reporting of Trading securities are as per Fair value whereas held to Maturity stocks are reported at Depreciated/amortized value.

Answer option (B) $28,000/-