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XYZ , Inc., began operations on January 1. The following information pertains to XYZ’s December 31 securities:

Trading         Available-for-Sale

Cost                $360,000                    $550,000

Fair value        320,000                      450,000

Lower of cost or fair value applied to each security    304,000      420,000

If the declines are judged to be temporary, what amounts should XYZ report for its trading and available-for-sale securities in the assets section of its December31 balance sheet?

Trading        Available-for-Sale

A. $360,000                     $550,000

B. $360,000                     $450,000

C. $320,000                     $450,000

D. $304,000                     $420,000

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Question added by Deleted user
Date Posted: 2015/02/23
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ahmed amin
by ahmed amin , Audit supervisor , KPMG

C- is the correct answer as these shows the fair value changes.

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