A nongovernmental not-for-profit entity holds an investment in common stock of a publicly traded entity and an
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A nongovernmental not-for-profit entity holds an investment in common stock of a publicly traded entity and an investment in debt securities of another. The NFP holds the common stock as a long-term investment and has the intent and the ability to hold the debt securities until maturity. Investment in Investment in Common Stock Debt Securities Original cost $50,000 $35,000 Amortized cost $28,000 Fair value $63,000 $40,000 At year end, the statement of financial position records the stock at original cost and the debt securities at amortized cost.
What adjustment(s), if any, should be made to the recorded amounts?
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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