The Quality of Carrying Values for Equity Investments SunTrust Bank (Easy) In 1993, SunTrust Bank of Atlanta reported investment securities on its balance sheet of $10,644 million, an increase over the $8,715 million reported for 1992 Footnotes revealed that most of the securities were interest bea...

Sun Trust Banks acquired the Coke shares many years earlier The historical cost of 110 milli ...

The Quality of Carrying Values for Equity Investments: SunTrust Bank (Easy). In 1993, SunTrust Bank of Atlanta

Question:

The Quality of Carrying Values for Equity Investments: SunTrust Bank (Easy). In 1993, SunTrust Bank of Atlanta reported investment securities on its of $10,644 million, an increase over the $8,715 million reported for 1992. Footnotes revealed that most of the securities were interest-bearing debt securities. But $1,077 million of the 1993 securities were shares held in the Coca-Cola Company, carried at market value. In 1992, the bank had carried these securities on the at their historical cost of $110 million.
Which carrying value for the Coca-Cola shares do you see as the better quality number, the market value or the historical cost?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...