Question

Kinsey Scales invested $ 164,000 of its extra cash in securities. Under each of the following independent scenarios, (a) calculate the amount at which the investments would be valued for the year- end balance sheet, and (b) indicate how these scenarios should be reported on the other financial statements, if at all.
1. All the securities were debt securities, with a maturity date in two years. Kinsey will hold the securities until they mature. The market value of the securities at year end was $ 158,000.
2. Kinsey purchased the securities for trading, hoping to make a quick profit. At year end the market value of the securities was $ 162,000.
3. Kinsey is uncertain about how long it will hold the securities. At year end the market value of the securities is $ 167,000.



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  • CreatedSeptember 01, 2014
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