The following data is used to answer questions 19-21. Avid Available for sale $35,000 39,000 38,500...

 

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The following data is used to answer questions 19-21. Avid Available for sale $35,000 39,000 38,500 Classification Cost Market Value, 12/31/09 Market Value, 12/31/10 Fickle Co. held to maturity $25,000 27,000 24,000 Xenu SA held to maturity $20,000 26,000 25,000 19. The balance sheet carrying value of the investment portfolio at 31 December 2010 would have been lower if which of the securities had been reclassified during the year as a trading security? a. Avid b. Fickle c. Xenu 20. Which investment would management have an incentive to reclassify as a trading security, if they were concerned with maximizing current year revenue? a. Avid b. Fickle c. Xenu 21. What is the balance sheet value as of 12/31/2010 of the investment portfolio as it is currently classified? a. $83,500 b. $89,500 c. $80,000 The following data is used to answer questions 19-21. Avid Available for sale $35,000 39,000 38,500 Classification Cost Market Value, 12/31/09 Market Value, 12/31/10 Fickle Co. held to maturity $25,000 27,000 24,000 Xenu SA held to maturity $20,000 26,000 25,000 19. The balance sheet carrying value of the investment portfolio at 31 December 2010 would have been lower if which of the securities had been reclassified during the year as a trading security? a. Avid b. Fickle c. Xenu 20. Which investment would management have an incentive to reclassify as a trading security, if they were concerned with maximizing current year revenue? a. Avid b. Fickle c. Xenu 21. What is the balance sheet value as of 12/31/2010 of the investment portfolio as it is currently classified? a. $83,500 b. $89,500 c. $80,000

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Answer 19 b Fickle Explanation Out of Fickle and Xenu that are cla... View the full answer