Exam 1 Help Save&ExitSubmit 7 Nichols Enterprises has an Investment in 25500 bon

Question

Exam 1 Help Save&ExitSubmit 7 Nichols Enterprises has an Investment in 25500 bonds of Elott Electronics thet Nichos accounts for as a security avalilable for sale. Eliott bonds ane publicly traded, and The Wall Street Jounal quotes a price for those bonds of $15S per bond, but Nichols believes the market has not appreciated the fu value of the Eliott bonds and that a more accurate price is $18 per bond. Nichols should carry the Eliott invwestment on its balance sheet at Mutiple Choice $459.000 $382 500 or 412000 382500

Explanation / Answer

As it is held as stock in trade, it is to be valued at Net Realisable or Cost whichever is less.

Hence, at $3,82,500 (25500*15)

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