Lakes Corporation reports on a calendar-year basis. Its December 31 financial st
ID: 2442135 • Letter: L
Question
Lakes Corporation reports on a calendar-year basis. Its December 31 financial statements were issued on February 3 of the following year. The auditor's report was dated January 22. The following information pertains to Lakes' aggregate marketable equity securities portfolio which is classified as available-for-sale:Cost $500,000
Market value, December 31 385,000
Market value, January 22 350,000
Market value, February 3 300,000
How much should be reported for accounting purposes on Lakes' balance sheet at December 31 for marketable equity securities?
a. $300,000 b.$350,000 c. $385,000 d. $500,000
please show work
Explanation / Answer
option "c" is the correct answer. the lower of the both would be reported . means that the market vaue or purchase vaue which ever is less would be reported in balnce sheet i.e 385000.Related Questions
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