Jameson Co. reports trading securities of $10,000 on their balance sheet. Assumi

Question

Jameson Co. reports trading securities of $10,000 on their balance sheet. Assuming the company followed GAAP, how was the $10,000 figure determined?

         A. $10,000 is the original cost of the securities.

         B.   $10,000 is the carrying value of the securities.

         C.   $10,000 is the fair value of the securities.

         D. None of the above.

         A. $10,000 is the original cost of the securities.

         B.   $10,000 is the carrying value of the securities.

         C.   $10,000 is the fair value of the securities.

         D. None of the above.

Explanation / Answer

Answer is C $10,000 is the fair value of the securities.

Under US GAAP investment in trading securities are reported on the balance sheet at fair value

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